What are peoples thoughts on the national insurance tax increase?
A lot of people on Twitter are saying that it’s not a 1.25% increase. It’s a 1.25 points increase which works out at a 10% increase in NI.
Then there are now reports that council tax has to go up in April because councils can’t afford to pay for social care. This can be anything up to 3% per council. So this could potentially be up to 13% increase in tax alone with the NI increase included.
Then on top of that you have the additional yearly increase in fuel, food, mobile, broadband and other bills.
The 3% allowed council tax increase has been around for a few years apparently, but no council has actually increased the council tax by the full 3% as of yet.
Also there are discussions between different political parties advising about the National Minimum Wage they would apply if they got into power (£10 per hour if labour get elected etc)
But no matter how much they put NMW up. We will still be in the same position as we’ll end up paying more tax on the higher amounts, and more towards bills and essentials.