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Daily Mirror
Daily Mirror
Politics
Nigel Nelson

Labour demands tax rise be scrapped as Russia sanctions hike cost of living

Labour is demanding the scrapping of April’s national insurance hike as sanctions against Russia send the cost of living soaring.

New analysis by Shadow Chancellor Rachel Reeves shows that the North East and Midlands would be hardest hit while the South would get off more lightly.

That is because more people in London and the South East get a greater share of their income from investments and property.

In the other two regions they must rely on wages so the tax will fall more heavily on them.

The war in Ukraine is already sending petrol prices towards £1.60 a litre and threatening home gas an electric costs of £3,000 a year.

Ms Reeves told the Sunday Mirror: “In the face of Russian aggression we must bring in the hardest possible sanctions against all those linked to Vladimir Putin.

“But alongside this the Government must also seriously think again about how rising costs and looming tax rises will hit working people here.”

Vladimir Putin (Getty Images)

She proposes instead a one-off windfall tax on oil and gas producers to cut household energy bills by up to £600 and scrapping VAT on domestic fuel.

Official figures show only 4% of people in the North East and 5% in the Midlands derive their income from investments. That compares to 8% in London and the South East.

A Treasury spokesperson said: “We recognise the pressures people are facing with the cost of living and are providing support worth around £20 billion this financial year and next to help.

“The Health and Social Care Levy will provide a necessary, permanent source of funding to support the NHS and social care system, benefiting people across the country.”

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