Economists in National Insurance Tax increase warning

Economists have voiced concern over plans to increase National Insurance in April, warning of the impact on households already being hit by soaring costs. Tom Clougherty from the Centre for Policy Studies told the Treasury Select Committee that it was “extremely perverse to raise taxes on ordinary earners in the middle of a cost of living crisis”, while the Resolution Foundation’s Torsten Bell said the Government should raise income tax instead of NI. He warned: “I think it’s going to be a pretty tough year and the whole country is going to feel squeezed in 2022 and lower income households are going to struggle most with that.”

 

City A.M.

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