With surging inflation exacerbating a cost-of-living squeeze, the government has faced growing pressure, including from some of its own Conservative lawmakers to delay or cancel a new health and social care levy that will see the rate of National Insurance rise by 1.25 percentage points.
However, according to prime minister Boris Johnson and finance minister Rishi Sunak, a planned increase in British social security contributions from workers and employers will go ahead in April, despite calls to scrap the rise due to the strain on household budgets.
Some British newspapers have speculated that Johnson, who faces a possible no confidence vote over social gatherings at Downing Street during Covid-19 lockdowns, might seek to shore up support by scrapping the rise.
Britain racked up its biggest budget deficit since World War II, equivalent to 15% of gross domestic product, in the 2020/21 financial year. The pair said that while they are 'tax-cutting Conservatives' they need to be responsible with public finances. British inflation in December was its highest in nearly 30 years at 5.4%, with rising energy costs adding to the pressure on household budgets. Johnson and Sunak said they would continue to look at the best way to support people through the post-pandemic economic recovery and were considering the best medium and long-term plan to improve the security of Britain's energy supply.
