Businesses in Cabinet ministers’ seats face a £103m clobbering with national insurance hike, research shows
- Data shows 40,500 firms in ministers constituencies will be impacted by NI rise
- In total, the increase will see constituents face a tax bombshell of £103.6million
- Lib Dems who commissioned research, accuse Government of ‘clobbering’ firms
The controversial national insurance rise will clobber firms in Cabinet ministers’ constituencies.
More than 40,500 small firms in the seats of senior ministers face a tax bombshell of £103.6million, research shows, with employers as well as workers also required to pay the 1.25 percentage-point rise.
In Chancellor Rishi Sunak’s Richmond constituency in Yorkshire, firms will be blighted by £5.4million worth of extra payments, the research by the House of Commons library found.
Employers in Health Secretary Sajid Javid’s Bromsgrove seat will be the hardest hit out of the Cabinet, with an estimated £6.7million extra tax bill.
The Government are accused of ‘clobbering’ small firms in their own constituencies as research shows firms in Rishi Sunak’s constituency will face £5.4million in additional tax charges while Mr Johnson’s constituents who run small firms face an increase of £4million
In Boris Johnson’s Uxbridge and South Ruislip seat, small firms face £4million in extra tax.
The Liberal Democrats, who commissioned the analysis, accused the Government last night of ‘clobbering’ small firms ‘with this crippling tax rise’.
Party leader Ed Davey MP said: ‘Hard-working people in Boris Johnson’s own backyard are set to be whacked with millions of pounds of extra unfair tax. It is time to spike the hike.
‘The Conservatives’ broken promise is a manifesto betrayal, dropping a tax bombshell on small businesses that are the backbone of our communities, high streets and local economies.
Lib Dem leader Ed Davey (pictured) has said the Tories must give firms a chance to grow again after Covid as he accused the Government of ‘clobbering’ them with a ‘crippling’ tax rise
‘We have already lost far too many treasured shops from our high streets, and too many businesses are already drowning in tax rises and red tape.
‘The Conservatives must give entrepreneurs the chance to grow again instead of clobbering them with this crippling tax rise.’
Last week a senior minister said: ‘It is the wrong time to be raising taxes. We need to have a clear recovery from Covid before we start working out what we want to do about the fiscal balance. The ball is very firmly in the Chancellor’s court.’
The Commons Treasury committee warned in a report released last week that the rise in employer national insurance contributions would contribute to a rise in inflation.
But the Prime Minister insisted last week that the tax rise was ‘absolutely vital’.
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