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| Version 1 | Version 2 |
|---|---|
| MPs vote to scrap health and social care tax rise | MPs vote to scrap health and social care tax rise |
| (3 months later) | |
| MPs have voted in favour of scrapping a tax rise introduced to fund the NHS and social care. | MPs have voted in favour of scrapping a tax rise introduced to fund the NHS and social care. |
| Treasury Minister Chris Philp defended the move, arguing that it was important to "urgently alleviate the tax burden" given the cost-of-living crisis. | Treasury Minister Chris Philp defended the move, arguing that it was important to "urgently alleviate the tax burden" given the cost-of-living crisis. |
| Labour supported the change and criticised ministers for introducing the levy in the first place. | Labour supported the change and criticised ministers for introducing the levy in the first place. |
| However, some MPs questioned how the government would fill any shortfall left by reversing the tax rise. | However, some MPs questioned how the government would fill any shortfall left by reversing the tax rise. |
| Mr Philp insisted that although the increase - which had been expected to raise £12bn a year - was being reversed, funding for health and social care would be "unaltered". | Mr Philp insisted that although the increase - which had been expected to raise £12bn a year - was being reversed, funding for health and social care would be "unaltered". |
| "Not a single penny less will go to social care or the NHS," he added. | "Not a single penny less will go to social care or the NHS," he added. |
| 'Jo's care might cost £1.5k a week - the system is broken' | 'Jo's care might cost £1.5k a week - the system is broken' |
| Will National Insurance changes leave me better off? | Will National Insurance changes leave me better off? |
| Investors wary as Kwarteng fast-tracks economic plan | Investors wary as Kwarteng fast-tracks economic plan |
| Former Conservative minister James Cartlidge asked if the gap would be filled by borrowing "or some other change". | Former Conservative minister James Cartlidge asked if the gap would be filled by borrowing "or some other change". |
| Mr Philp replied that this would be set out by Chancellor Kwasi Kwarteng on 31 October when he delivers his economic plan to MPs. | Mr Philp replied that this would be set out by Chancellor Kwasi Kwarteng on 31 October when he delivers his economic plan to MPs. |
| Labour shadow Treasury minister James Murray said his party welcomed the government "finally admitting they were wrong to raise national insurance on working people and businesses in the middle of a cost-of-living crisis". | Labour shadow Treasury minister James Murray said his party welcomed the government "finally admitting they were wrong to raise national insurance on working people and businesses in the middle of a cost-of-living crisis". |
| Following a debate, the bill cleared the Commons after receiving an unopposed third reading. | Following a debate, the bill cleared the Commons after receiving an unopposed third reading. |
| Before it comes into effect, the reversal also needs to be approved in the House of Lords - this is expected to happen on 17 October. | Before it comes into effect, the reversal also needs to be approved in the House of Lords - this is expected to happen on 17 October. |
| Liz Truss had made scrapping the tax rise - introduced by her rival Rishi Sunak - a key part of the campaign to lead the Conservative Party | Liz Truss had made scrapping the tax rise - introduced by her rival Rishi Sunak - a key part of the campaign to lead the Conservative Party |
| Under the original plan introduced by the government in April, National Insurance was increased by 1.25p in the pound. | Under the original plan introduced by the government in April, National Insurance was increased by 1.25p in the pound. |
| From April 2023, the extra tax was to have been collected as the new Health and Social Care Levy. | From April 2023, the extra tax was to have been collected as the new Health and Social Care Levy. |
| The money raised was intended to go firstly towards helping the NHS tackle backlogs after Covid, then to fund social care. | The money raised was intended to go firstly towards helping the NHS tackle backlogs after Covid, then to fund social care. |
| Raising the tax broke a Conservative manifesto promise, but then-Prime Minister Boris Johnson said it was needed help to deal with the "catastrophic costs" faced by those who need care. | Raising the tax broke a Conservative manifesto promise, but then-Prime Minister Boris Johnson said it was needed help to deal with the "catastrophic costs" faced by those who need care. |
| The Treasury has said dropping the tax rise would save nearly 28 million people an average of £330 per year, while 920,000 firms would get a tax reduction of nearly £10,000. | The Treasury has said dropping the tax rise would save nearly 28 million people an average of £330 per year, while 920,000 firms would get a tax reduction of nearly £10,000. |
| Related Topics | Related Topics |
| Tax | Tax |
| Health | |
| Social care | Social care |
| Chris Philp | Chris Philp |
| NHS | NHS |
| Pay | Pay |