Treasury slammed over this ‘doubtful’ declare as fury mounts | Politics | News | EUROtoday

Treasury officers have been on Friday accused of constructing “dubious” claims about nationwide insurance coverage rises.

The division provoked fury after saying on social media website X “we’re not increasing the basic, higher, or additional rates of Income Tax, National Insurance or VAT”.

Shadow Chancellor Mel Stride has written to Treasury Permanent Secretary James Bowler concerning the social media submit from the division’s official account, claiming they might have damaged civil service steering.

Mr Stride requested Mr Bowler whether or not they had been pressured to say this, in keeping with Labour’s election manifesto.

Chancellor Rachel Reeves elevated employer nationwide insurance coverage contributions to boost an additional £25bn – the principle tax rise within the Budget.

And Paul Johnson, Director of the Institute for Fiscal Studies, mentioned of the submit on X: “Seriously? I know this was in the Red Book. And I’m no expert on rules covering what government depts can/cannot say. But at best this is dubious. And that’s being generous. Increasing NI was the central tax raising measure in the Budget. What is the point in pushing this line?

The tax burden as a share of GDP is on track to reach the highest sustained level since records began over 300 years ago, it warns.

Shadow Chancellor Mel Stride said: “I have written to the Permanent Secretary of the Treasury over the Government’s consistent use of misleading claims relating to their National Insurance hike.

“Labour promised not to raise NICs and they did. They should be honest about that.”

In his letter, Mr Stride mentioned: “Do you agree, by claiming the Government is not increasing National Insurance, this information is misleading?

“Can you confirm officials were not pressurised into publishing misleading information by the Treasury?

“Do you agree it is important that official Government social media posts adhere to the Civil Service guidance on social media which states ‘accuracy’ as a ‘point to bear in mind’ when posting?”

Analysts have warned that the employer NICs rise can be a de facto tax on employees as companies will reduce on pay rises to cowl their increased tax payments.

The Office for Budget Responsibility (OBR) warned in its Budget evaluation that employees would ultimately pay for four-fifths of the tax rise by means of decrease pay.