MPs warn PM that planned NI tax hike will fuel inflation

MPs warn PM that planned NI tax hike will fuel inflation
MPs warn PM that planned NI tax hike will fuel inflation
Boris's national insurance in April will make inflation even WORSE and wreck family finances by driving prices up further, warn MPs in damning report The planned national insurance rise will increase inflation, MPs have warned  Householders have seen bills across a range of products and services increase From April, workers and businesses will see their NI contributions increase  A Commons Committee said UK inflation is at a 30-year high of 5.4 per cent 

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April's national insurance rise will worsen inflation and was rushed in with no regard for family finances, MPs warned last night.

In a major report, they criticised the Government for hastily bringing forward the measure without a more thorough assessment of its impact.

And the Commons Treasury committee warned the tax grab risked worsening inflation at a time when it was already at a 30-year high of 5.4 per cent.

Business leaders say that many firms – which have to pay national insurance on behalf of their employees – will have to raise prices to offset higher costs.

PM Boris Johnson has been warned that a planned National Insurance hike in April will worsen inflation

PM Boris Johnson has been warned that a planned National Insurance hike in April will worsen inflation 

The report will add to the growing pressure on Chancellor Rishi Sunak to rethink the rise, which many Tory MPs and business groups oppose

The report will add to the growing pressure on Chancellor Rishi Sunak to rethink the rise, which many Tory MPs and business groups oppose

Committee chairman Mel Stride warned: ‘While the Prime Minister’s ambition to promote high wage growth is worthy, focusing on increasing wages without improving productivity is likely to be inflationary, and risks contributing to a wage price spiral.’

The report will add to the growing pressure on Chancellor Rishi Sunak to rethink the rise, which many Tory MPs and business groups oppose.

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