Tory leader Kemi Badenoch has taken aim at Sir Keir Starmer over Rachel Reeves’ decision to hike employers’ National Insurance contributions from 13.8% to 15%, warning that her upcoming spring statement is effectively an “emergency Budget.”
During a tense showdown in the House of Commons, Badenoch didn’t hold back, asking: “The Chancellor claimed that her Budget was a once in a Parliament reset. So why are we having an emergency Budget next week?”
Starmer fired back, dismissing her criticism and defending Labour’s economic record: “We have delivered record investment into this country, three interest rate cuts in a row, and wages are going up faster than prices, which is a massive cost-of-living boost. That is after only eight months after 14 years of absolute failure”, reported GB News.
But Badenoch wasn’t done. She doubled down, accusing the Chancellor of “destroying” business confidence and demanded to know if the Prime Minister regretted raising taxes on businesses.
Starmer defended the move, saying: “The OBR will present their numbers, there will be a spring statement next week. But we have got record investment into this country, interest rates have been cut and she talks about National Insurance—we had to fill the £22 billion black hole that they left.”
However, when pressed on whether Labour would exempt hospices from its National Insurance increase, Starmer was unable to provide a clear answer for charities hoping for relief. Instead, he insisted: “We have made provision for hospices, we have made provisions for charities, but we had to secure the economy, we had to fill the £22 billion black hole that they disgracefully left.”
Liberal Democrat leader Sir Ed Davey also challenged the Prime Minister on the issue, urging him to grant an exemption for care providers. But Starmer refused, prompting Davey to criticise the decision: “I think the whole House is disappointed by that reply. I hope that, ahead of the spring statement, the Prime Minister and the Chancellor will think about taking that money from the NHS, and reverse that.”
Despite Badenoch and Davey’s efforts, Labour’s majority in Parliament ensured that attempts to limit the National Insurance hike were shot down. A Liberal Democrat-led amendment to exempt health and social care providers was defeated by 307 votes to 182. Another proposal, aimed at exempting charities with an annual revenue of less than £1 million, was also rejected—310 MPs voted against it, while just 183 supported it.
Labour’s majority also blocked efforts to spare employers who provide transport for children with special educational needs and disabilities from the tax rise, despite concerns about the impact on vulnerable families.
