Treasury Minister James Murray faced tough questioning on GB News regarding speculation of a potential National Insurance hike for employers in the upcoming Budget.
Murray declined to confirm the rumoured tax increase, stating that “difficult choices” must be made to stabilise public finances.
He emphasised the Government’s commitment to not raising taxes on “working people”, including income tax, VAT, and National Insurance contributions. However, Murray’s careful wording left open the possibility of increased employer contributions.
Prime Minister Sir Keir Starmer hinted at a possible rise in employer National Insurance rates during a BBC interview this morning, despite Labour’s manifesto pledge to avoid tax increases on working individuals.
Isabel Webster admitted she is ‘going crazy’ over Labour’s lack of clarity on National Insurance hikes
GB News
Starmer was pressed on whether the Labour manifesto ruled out increasing any rate of National Insurance, for both employers and employees. He responded: “We were very clear in the manifesto that we wouldn’t be increasing tax on working people.
“And we expressly said that that was income tax, that was NICs, etc.”
Murray emphasised that the government’s primary focus is on stimulating economic growth and attracting investment.
Speaking to GB News, he stated: “If we can get stability back into the economy, we increase investment and we get the economy growing, that’s the prize ahead.”
“I can be very clear that working people pay National Insurance, income tax and VAT, and we’ve pledged not to increase them. And I think you’ve got to remember the reason why that commitment was so important.”
Expressing her frustration with Labour’s lack of clarity on the potential increases, host Isabel Webster fumed: “I sometimes feel like I’m going crazy doing these interviews.
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“We did a similar one yesterday with your colleague Peter Kyle. You just said we said working people pay National Insurance. Well, among those are employers.
“And I ask you again because you dodged the question skilfully. Are you saying employers are not working people because quite blatantly they are.
“It’s a really important commitment to us to not raise taxes on working people, as I’ve set out, and I’ve explained why that was so important to us, given the context of the election and the previous government.”
The Treasury minister reiterated the importance of Labour’s commitment to not raise taxes on working people, citing the context of the previous government’s economic policies.
Isabel Webster pressed Murray on Labour’s plans ahead of the Budget
GB News
Murray stressed that long-term prosperity hinges on economic growth, linking this to the recent boost in investment announced by the government.
He explained: “But actually, what I really want to emphasise as well is that the way that we make people better off in the long run is by getting the economy growing.
“And it comes back full circle to what we saw yesterday, and that big boost for investment, because it’s on the back of that investment, we can get the economy growing to make people better off.
“That’s why that promise was so important, and that’s why it’s so important for us to maintain it going into this Budget.”