Jacob Rees-Mogg ‘is leading tax revolt over cost of living’ as he calls for 1.25% NI rise to pay for social care reform to be shelved
The Commons leader told Boris Johnson that a planned tax hike in April cannot be justified while families face soaring costs for food and heating.
In a heated Cabinet meeting yesterday, Mr Rees-Mogg reportedly suggested the 1.25 per cent national insurance rise to pay for social care reforms should be shelved.
But Chancellor Rishi Sunak pushed back against calls for the levy to be scrapped or postponed, the Financial Times said.
A Government insider told the newspaper Mr Rees-Mogg felt ‘finding savings would be more frugal and responsible’ than raising taxes to fund improvements to the NHS.
And his colleagues said he was ‘increasingly unhappy’ at the Government’s policy direction, including on Covid curbs.
But Mr Rees-Mogg’s allies insisted he was ‘a loyal supporter’ of the PM, and declined to comment on his intervention in Cabinet.
It came as business leaders warned that spiralling energy prices could lead to higher shopping bills and add a further two per cent to rising inflation.
A British Chambers of Commerce survey of almost 5,500 companies found three out of five expect their prices to increase in the next three months as they pass on extra energy costs.