Gordon Brown warns of inflation and recession
The Prime Minister says workers will save up to £330 a year thanks to historic changes that come as the cost of living crisis continues to bite. With food and petrol prices soaring, Mr Johnson said the move was “an important moment in our mission to ease the burden on households”. Raising the threshold will also help rebuild the economy, he insisted.
The changes will see the point at which people start paying National Insurance at £12,570.
This means that seven out of ten workers will pay less for national insurance, even after taking into account the health and social care tax.
About 2.2 million people will be exempt from paying any NI or income tax on their earnings.
Mr Johnson will assemble his best team for a Cabinet meeting at No 10 on Tuesday before the change.
He said: “Tomorrow is an important moment in our mission to ease the burden on households and rebuild our economy, as the biggest tax cut in a decade takes effect.
“The list of people who will benefit is vast – from hairdressers and carers to receptionists – around 30million UK workers will save up to £330 a year on their National Insurance contributions.
“But we’re not just providing aid right now, we’re investing record sums in infrastructure, skills and technology to improve and increase productivity across the country.
“Because it’s the responsible, long-term way to meet the cost of living, to control our borrowing and debt, so that we don’t burden our children with a huge mountain of debt and pave the way to more tax cuts in the future.
“This is how my government will get our country through these difficult times.”
Mr Johnson will assemble his best team for a Cabinet meeting at No 10 on Tuesday before the change
The move will allay some fears among backbench MPs that the Tories under his leadership are not a tax-cutting party.
But some senior MPs, including former Tory leader Sir Iain Duncan Smith, have demanded he go further and cut more taxes now, rather than wait until closer to the next election.
Under the changes, youth workers on an average salary of £23,136 will save around £262 a year, receptionists on £14,317 will save around £344 a year and social workers on £16,502 will save around £324 a year. year.
Last week, the government launched a new online tax tool last month that gives personalized estimates of how much people could save from the tax cut.
Last Friday, 82% of people who used the online network card calculator found that they would save money next year.
Over the weekend, Mr Johnson and Chancellor Rishi Sunak wrote a joint piece to outline the tax cut in a show of unity over the cost of living crisis.
The pair also highlighted the billions the government plans to spend to cushion the blow of inflation by also providing relief for municipal tax bills, fuel taxes and energy costs.
Fears continue to grow that the cost of living crisis could tip the UK into recession, defined by two consecutive quarters of falling output, as soaring inflation forces households and businesses to limit their expenses.
Inflation has already reached a 40-year high of 9.1% and is expected to exceed 11% in the fall.
Bank of England Governor Andrew Bailey said last week soaring inflation will hit Britain harder than any other major economy during the current energy crisis and output is expected to weaken more early and be more intense than the others.
New figures from HM Revenue and Customs showed that some 6.1 million taxpayers are expected to pay income tax rates at the top rate of 40% or the additional rate of 45% in 2022/23.
Rampant inflation has seen food and fuel prices soar to record highs.
The average price of a liter of petrol on UK forecourts hit a new record high of 191.5p on Sunday, according to data firm Experian.
The average diesel price was 199.0 pence per litre.
Mr Johnson suggested Saudi Arabia needed to produce more oil to ease cost of living concerns.
Speaking in the Commons, he told MPs on Monday: “It’s debatable how much more the Saudis could pump at this very moment, but there’s no doubt that we’ll need a lot more Opec Plus oil.
“The UK has a strong and productive relationship with Saudi Arabia, we need to make sure the whole of the West does the same, and we are letting the Saudis know that. But this is the way forward, they must produce more oil, no doubt.
Rebels attempt to use Pincher to beat Boris
Tory rebels were slapped last night for trying to use groped allegations against Chris Pincher to launch a new bid to ditch Boris Johnson, writes Sam Lister, deputy political editor of the Daily Express.
His opponents claimed the allegations against the former deputy chief whip bolstered the resolve within the party to oust the prime minister. But Mr Johnson’s allies called the move a ‘despicable’ attempt to use the sex scandal as a means of attack.
Culture Secretary Nadine Dorries said: “This week families will start to feel the impact of the biggest tax cut in a decade.
“Meanwhile, we are developing the economy to meet the cost of living and taking action at home and abroad to keep our streets safe.
“In these difficult times, this government is providing the necessary leadership, but the Prime Minister’s perennial critics want to use any means possible to oust the Prime Minister. The challenges we collectively face are too real and the people they affect are too important to allow us to deflect our efforts.
The rebels claimed the row ‘100%’ strengthened their case for change at the top and said it ‘sharpened tempers’. But Tory MP Michael Fabricator said: ‘Chris Pincher is being used by the same old people as an excuse to beat the Prime Minister. It’s worse than despicable. »
Mr Pincher dramatically quit last week over allegations he groped two men at a private Tory club. He previously resigned from the whips’ office in 2017 after he claimed he made unwanted advances to a young campaigner, but was later reinstated after being cleared by an internal investigation.
Other allegations of sexual advances to men emerged over the weekend, which Mr Pincher denied. Downing Street confirmed that Mr Johnson was aware of the concerns about Mr Pincher when he appointed him, but said: ‘There were no formal complaints at that time.
The Labor leader gave a major speech insisting he wanted to ‘make Brexit work’
Starmer: No case to join EU
Sir Keir Starmer has been accused of ‘cynically’ U-turning on Brexit to win votes after insisting a Labor government saw ‘no reason’ to join the EU.
The Labor leader, who has been campaigning for a second referendum, gave a major speech insisting he wants to ‘make Brexit work’.
But he faced an immediate backlash from his own MPs, while Brexiteers said they did not trust his ‘conversion’. Conservative Brexiteer Peter Bone said: “Why has he completely changed his position on Brexit? And most of his party are Remnants.
“It’s a cynical attempt to win votes.”
In a speech at the Irish Embassy, Sir Keir said Labor was “once again claiming the center of British politics”.
He continued, “We can’t afford to look back over our shoulder, because all the time we’re doing this, we’re missing what’s to come.
“So let me be very clear. Under Labor, Britain will not return to the EU. We will not join the single market. We will not join a customs union.
Labour’s Rosie Duffield said: ‘If an MP was elected with an anti-Brexit mandate they should continue to oppose it.’