Crewe & Nantwich Labour Party has issued a strong condemnation of local Tory MP, Dr Kieran Mullan for voting in favour of the Government’s health and social care levy, which will see National Insurance contributions rise by 1.25 percentage points to fund the NHS and changes to the social care system.
The levy, which has been described by Shadow Chancellor Rachel Reeves as a “job-taxing, manifesto-shredding, tax bombshell,” was passed by 319 votes to 248 yesterday evening. Labour voted against the resolution.
In highlighting their concerns about Boris Johnson’s new care plan, Crewe and Nantwich Labour Party drew attention to several key areas where the new levy stands to negatively impact the lives of hard-working people in Crewe and Nantwich, namely;
- Significant uncertainty as to how much of the money raised by the levy will actually filter through to social care.
- The fact that an individual’s home may be potentially used to fund care, up to an amount of £86.000, not including food and accommodation costs, thereby effectively wiping out the home as an asset, especially in areas where property values are low.
- The decision to use a NI levy (effectively a jobs tax) impacts disproportionately on lower earners.
- The use of an NI levy means workers who are never likely to own their own home are effectively paying to retain the property rights of others.
The likely negative impact of the new levy was outlined by Laura Smith, Cheshire East Councillor for Crewe South, who commented;
“The Prime Minister’s plans to raise National Insurance by 1.25%, is taking money straight out the pockets of hard-working people who have struggled throughout the pandemic, while not touching the richest who have amassed extraordinary wealth over the past year and a half. Once again it is those breaking their backs, working all the hours they can, who pay for the privileged to continue getting richer! It is no surprise to me that a multi-millionaire chancellor has his priorities firmly fixed on the super wealthy.
Families will see energy price hikes, food bills rise and many locally will be impacted by the £20 cut in Universal Credit. The future looks desperate for many just trying to make ends meet.”
Connor Naismith, Cheshire East Councillor for Crewe West added;
“In introducing this new social care levy, the Prime Minister has broken a key manifesto pledge that he would not increase NI contributions. By choosing National Insurance in particular, he has assured that the levy will disproportionately hit the pockets of those on middle and low incomes.
“On the specific issue of Dr Mullan’s voting record, it should be emphasised that Crewe and Nantwich residents expect their MP to stand up for their interests, not blindly toe the party line as ours has done repeatedly.”
“On the specific issue of Dr Mullan’s voting record, it should be emphasised that Crewe and Nantwich residents expect their MP to stand up for their interests, not blindly toe the party line as ours has done repeatedly.” - Cllr Connor Naismith