Tag Archives: national insurance contributions

15 October 2025 – today’s press releases

  • Budget rumours: Reeves must rule out “cloak and dagger” efforts to drag people into paying more tax
  • China case: Lib Dems call for release of all legal advice — including evidence needed for spy case to proceed
  • Angus MacDonald MP calls for common sense on rural helipads
  • Murray presses PM over small business national insurance in East Dunbartonshire

Budget rumours: Reeves must rule out “cloak and dagger” efforts to drag people into paying more tax

Responding to Rachel Reeves admitting there may be more tax rises in this autumn’s Budget, Daisy Cooper, Liberal Democrat Treasury Spokesperson, said:

Millions of people up and down the country are worried they could face more damaging tax hikes, after the Conservative party saddled them with a stealth tax and this Government hit them with an unfair jobs tax.

Prolonging this uncertainty for weeks will leave people deeply worried about what this could mean for their payslips and bills.

Rachel Reeves must rule out a cloak-and-dagger effort to raise revenue by extending the Conservatives’ stealth tax and dragging even more working people into higher tax rates. What we need is a proper growth plan and for the big banks, social media giants and gambling companies to pay their fair share of tax.

China case: Lib Dems call for release of all legal advice — including evidence needed for spy case to proceed

Following the Prime Minister’s announcement of his plan to publish the witness statements by the deputy national security adviser on the China case, the Liberal Democrats are now calling on the Government to put the full legal advice they received on the public record.

The party is calling for the Government to publish advice including on what evidence would be needed for the spy case to proceed.

Daisy Cooper, Liberal Democrat Deputy Leader, said:

The public have had enough of the constant blame game between the Conservatives and Labour on the collapse of the China spy case.

The Government must bolster their publication of witness statements and put all the legal advice they’ve received on this case on the public record – including advice on what evidence would be needed for this trial to go ahead.

Number 10 must also urgently launch an independent inquiry so we can finally get to the bottom of what actually happened in this labyrinthine case.

Angus MacDonald MP calls for common sense on rural helipads

Angus MacDonald, MP for Inverness, Skye and West Ross-shire, has called on the UK Government to cut through “bewildering” red tape that has stopped search and rescue helicopters from landing on community helipads in rural areas.

While leading a Westminster Hall debate on Access to Community Helipads in Rural Areas, Mr MacDonald raised the case of the Portree and Braes Community Trust helipad, which serves the north end of Skye, including the local hospital. Despite being purpose-built and refurbished to high safety standards, search and rescue helicopters operated by Bristow are not currently able to land there.

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19 March 2025 – yesterday’s press releases

  • US-Russia call: Putin is “stringing Trump along”
  • NICs vote: Labour MPs vote for “health tax” on GPs, pharmacies and care homes
  • Conservative local election launch: “buck stops” with Badenoch
  • “Time for a fair deal for farmers” – Carmichael to introduce Food Supply Chain Fairness Bill
  • Scottish Government admits it failed to conduct safeguarding review
  • Minister visited Skye House just months before cruelty allegations surfaced
  • Severn Estuary Commission Report – Get on with Building the Swansea Bay Tidal Lagoon
  • Rennie responds to damning evidence session on funding crisis at Dundee University

US-Russia call: Putin is “stringing Trump along”

Responding to Putin’s phone call with Trump, Calum Miller MP, Liberal Democrat Foreign Affairs Spokesperson, said:

Donald Trump’s fawning call with Putin couldn’t be more different to his and JD Vance’s shameful bullying of Zelensky in the Oval Office.

It’s clear Trump is being played by Putin – stringing him along and currying favour even as his savage war machine continues to push deeper into Ukraine.

Now is the time for the UK and our allies in Europe and the Commonwealth to redouble our efforts to support Ukraine’s defence and achieve a lasting peace.

NICs vote: Labour MPs vote for “health tax” on GPs, pharmacies and care homes

Responding to the Government voting to reject a Liberal Democrat amendment which would have exempted health and care providers from the national insurance rise, Liberal Democrat Treasury spokesperson Daisy Cooper MP said:

Labour MPs today have voted for a health tax on GPs, dentists, pharmacies, hospices and care homes, and it is patients who will pay the price.

The Liberal Democrats are proud we have led the fight to exempt health and care providers from this misguided tax hike, and we will not give up now.

On April 6th worried social care providers and GP surgeries are going to be hit with bills they simply cannot afford. Rachel Reeves must finally see sense, U-turn on this disastrous policy and exempt health and care providers from this damaging jobs tax.

Conservative local election launch: “buck stops” with Badenoch

Commenting on the Conservatives’ local election launch tomorrow (20th March) a Liberal Democrat spokesperson said:

The buck stops with bungling Badenoch. If she fails to deliver in the local elections, the writing will truly be on the wall for her and for the Conservative Party.

Whilst they compete with Reform and tilt ever further to the right, the Liberal Democrats are focused on delivering for residents on issues including the cost of living, sewage in our rivers and the emergency in our NHS and care.

We’re hearing on the doorsteps that people haven’t forgiven the Conservatives for all the damage they’ve done. If Kemi speaks to voters tomorrow, she will doubtless hear the same. Voters have a clear choice in May, and across the country, including in Buckinghamshire, they are turning to the Liberal Democrats as community champions who will stand up for them.

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25-26 January 2025 – the weekend’s press releases

  • NHS: “bonfire” of targets shows shocking lack of ambition for patients
  • Over 500 infrastructure incidents at delayed hospitals last year which now are “hanging by a thread”
  • Councils paying £24,000 more a year per pensioner in nursing costs as Lib Dems call on govt to reverse “foolish” NICs hike
  • Reeves on Kuenssberg: Chancellor’s approach to growth “does not survive contact with reality”
  • Badenoch on Kuenssberg: “Bungling Badenoch” still has no idea how angry people are at the damage the Conservatives did
  • Scottish Conservative leader urged to explain whether he believes triple lock should be means tested
  • Almost 1 in 5 senior mental health roles missing a permanent appointee

NHS: “bonfire” of targets shows shocking lack of ambition for patients

Responding to a report in the Times that the government is set to scrap half of NHS targets, Liberal Democrat Health and Social Care spokesperson Helen Morgan MP said:

Patients have put up with a health service that has been run into the ground and caused unnecessary suffering for millions.

The new government cannot claim to have broken with years of Conservative neglect simply by moving the goalposts in this way.

That is not delivering for patients, instead it is a sly attempt to give themselves an undeserved pat on the back.

From delays to reforms of social care, new hospitals being kicked into the longgrass and now this reported bonfire of NHS targets, this new government is showing a staggering lack of ambition for patients.

Over 500 infrastructure incidents at delayed hospitals last year which now are “hanging by a thread”

  • At hospitals in the New Hospital Programme which have seen their construction dates pushed back there were 506 infrastructure incidents – causing 32 days of clinical time to be lost
  • These sites also saw close to 100 floods last year – a quarter of all floods on the NHS England estate despite accounting for less than 1% of the buildings
  • Delayed hospitals have already had to shut all toilets on the estate following sewage leaks and burst water pipes mean patients warned off going to A&E
  • The Liberal Democrats said that the figures revealed that the delayed hospitals are “hanging on by a thread” and called on the Health Secretary to publish a full impact assessment into the risks to patient safety

There were more than 500 infrastructure and estate incidents last year at hospitals where construction as part of the New Hospital Programme will be delayed, research by the Liberal Democrats has revealed.

They resulted in significant impact for patients with 759 hours of clinical time lost as a result of these incidents, the equivalent of 32 days.

241 of these infrastructure and estate incidents were judged to be caused by or related to critical infrastructure risk at these sites, equating to almost half. These issues can include crumbling roofs at risk of collapse, water leaks, broken-down lifts or ventilation and heating systems not working properly.

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21 January 2025 – yesterday’s press releases

  • Unemployment: Reeves must scrap jobs tax
  • Southport Inquiry: Must get us answers to avoid future failures
  • WASPI: More than 300,000 women in Scotland “betrayed” by Labour decision
  • Welsh unemployment rise: Labour must scrap their Jobs Tax
  • Cole-Hamilton: SNP have left A&E in state of perma-crisis
  • McArthur: Community orders should be credible solutions to prison overcrowding

Unemployment: Reeves must scrap jobs tax

Responding to the latest figures showing unemployment at 4.4%, Liberal Democrat Treasury spokesperson Daisy Cooper MP said:

These latest figures are concerning. The government’s misguided jobs tax is already scaring off small businesses from hiring new people and being able to better serve our communities.

The Chancellor talks about growth but her Budget measures are acting as an anchor against just that.

After years of the Conservative Party’s economic vandalism we cannot see this new government repeat their mistakes. That is why Rachel Reeves needs to scrap her jobs tax to get our economy growing again.

Southport Inquiry: Must get us answers to avoid future failures

Commenting after Starmer’s press conference following the government’s announcement of an inquiry into the Southport murders, Liberal Democrat Leader Ed Davey said:

The Liberal Democrats welcome this inquiry, which must not shy away from asking tough questions about what went wrong.

This was an utterly horrific tragedy. My thoughts go out to the bereaved families, who lost three young daughters to such brutal violence. We need to ensure that such a senseless attack cannot happen again.

We must learn from these events, and the inquiry must urgently get us the answers we need to avoid future failures.

WASPI: More than 300,000 women in Scotland “betrayed” by Labour decision

Speaking ahead of a Scottish Parliament debate on compensation for WASPI women, Beatrice Wishart MSP has said her party will “fight for WASPI women” as data from the House of Commons library estimated that an estimated 331,780 women in Scotland could be affected.

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9 January 2025 – today’s press releases

  • Food prices set to rise: news will be hammer blow for millions already choosing between heating and eating
  • NHS stats: winter “one of the most brutal on record” as Lib Dems call on Streeting to bring forward emergency plan to protect patients
  • ‘Bed blocking’ has already cost NHS £165 million this winter as Davey calls on govt to finish social care review this year
  • Market turmoil: Chancellor should cancel China trip for emergency growth statement
  • Oxford Farming Conference: Reed’s “regret” not good enough – Starmer must reverse family farm tax
  • More than 440,000 police officer and staff days lost to mental health since 2019

Food prices set to rise: news will be hammer blow for millions already choosing between heating and eating

Responding to the British Retail Consortium saying that food prices will rise by 4.2% in the latter half of this year as “retailers battle the £7 billion of increased costs in 2025 from the Budget”, Liberal Democrat Treasury spokesperson Daisy Cooper MP said:

This news will come as a hammer blow to families across the country. Millions of people are already having to choose between heating and eating and the prospect of even more pressure on stretched budgets will be incredibly worrying.

The new government is faced with the enormous challenge of cleaning up the Conservative Party’s economic vandalism, but their approach so far risks repeating more mistakes.

It’s now clear as day that the Chancellor’s misguided national insurance hike is only going to hammer household budgets further by forcing up prices. Ministers must recognise their error and scrap this tax hike immediately.

NHS stats: winter “one of the most brutal on record” as Lib Dems call on Streeting to bring forward emergency plan to protect patients

Responding to NHS England saying that this is the busiest year on record for emergency services, Liberal Democrat Health and Social Care spokesperson Helen Morgan MP said:

This winter threatens to be one of the most brutal on record. Patients are suffering through deadly delays and staff are already at breaking point.

There can be no overstating just dangerous this situation is after years of the previous Conservative government’s shameful neglect of our NHS.

It is of paramount importance that the new government grips this crisis urgently. That must start with the Health Secretary producing an emergency plan in the coming days to protect patients from this ongoing disaster.

‘Bed blocking’ has already cost NHS £165 million this winter as Davey calls on govt to finish social care review this year

  • This winter has already seen 417,220 bed days taken up by patients that were well enough to be discharged – costing the NHS £165 million or £4.8 million a day
  • 12,271 of England’s 103,277 hospital beds have been taken up by people who are fit to be discharged everyday this winter – the equivalent of just under one in eight
  • Lib Dem Leader Ed Davey has called on the government to complete its social care review by the end of the year to take pressure off hospitals

This winter has already seen 417,220 bed days taken up by patients that were fit enough to be discharged, the equivalent of 1 in 8, costing the NHS £165 million in just over a month research by the Liberal Democrats has revealed.

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22 November 2024 – today’s press releases

  • Davey: NICs hit is creating a perfect storm for the care sector
  • Davey on Ofgem energy price rise: Freeze energy bills and reinstate Winter Fuel Payments
  • Chamberlain calls for energy bills to be frozen and Winter Fuel Payments to be reinstated after energy price rise

Davey: NICs hit is creating a perfect storm for the care sector

Analysis released by the Nuffield Trust today (Friday 22 Nov) has found that the changes to Employer’s NICs look set to cost the adult social care sector over £900m next year, more than wiping out the extra funds allocated to social care at the Budget. The analysis by Nuffield Trust also estimates that the 18,000 independent organisations providing adult social care in England will be faced with increased costs of an estimated £2.8bn in the next financial year, meaning many businesses – especially smaller ones – are at risk of going bust.

Responding, Liberal Democrat leader Ed Davey said:

These damning figures lay bare the devastating impact of the National Insurance hike on social care. The government must immediately do the right thing and exempt care providers from this ill-thought through tax hike.

This hit is creating a perfect storm for a care sector already damaged by the Conservative party’s neglect. Now there is a real danger small care providers will simply not survive.

Ultimately, it’s people in care who will suffer the consequences. The Chancellor must urgently act to help our social care sector before it’s too late.

Davey on Ofgem energy price rise: Freeze energy bills and reinstate Winter Fuel Payments

Liberal Democrat Leader Ed Davey has today called on the government to freeze energy bills so that Ofgem’s newly announced rise in the price cap will not go ahead.

He also called on the government to reinstate Winter Fuel Payments or risk pensioners being “left out in the cold” this winter.

Ofgem announced today that the energy price cap will rise by 1.2% to £1,738 a year in January, following the previous 10% rise in October. The Liberal Democrats are calling on the government to cancel this rise in energy bills so that households don’t face even higher energy costs in the new year.

Liberal Democrat Leader Ed Davey said:

Enough is enough. This further rise in energy prices cannot go ahead. As we enter another cold and difficult winter, many people simply can’t afford to see their heating bills go up yet again.

The disastrous government cuts to the Winter Fuel Payments coupled with this energy price rise will be a hammer blow for millions of vulnerable pensioners this winter.

The new government must step in now, cancel this bill rise and reinstate Winter Fuel Payments to stop families and pensioners being left out in the cold this winter.

This is a government that has pledged to bring down energy bills, it is time for them to live up to their word.

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20 November 2024 – today’s press releases

  • Dentists left in the dark as government fails to assess impact of NICs hikes
  • Thames Water: we need to see an outright ban on exec bonuses whilst sewage scandal drags on
  • Cole-Hamilton attacks national insurance impact on GPs and care providers

Dentists left in the dark as government fails to assess impact of NICs hikes

The Liberal Democrats have revealed that the government made no assessment of its recent tax hike on NHS dentists.

Responding to a parliamentary question from the Liberal Democrats, Labour government minister Stephen Kinnock responded that “no assessments have been made yet on the potential impact of an increase in employers’ National Insurance Contributions on dental practices’ finances.”

The government announced at the budget that it would increase employers’ National Insurance Contributions (NICs) next year but has faced a backlash from health and care providers who will receive no extra support.

Whilst the government has confirmed that NHS hospitals and secondary care will be exempt, GPs, pharmacies, hospices and NHS dentists will not. This is putting financial pressure on these vital services and could force them to cut appointments and staff numbers.

The British Dental Association has slammed the move and the government’s failure to carry out an impact assessment, commenting that “it’s utterly reckless to heap new costs on struggling practices without even considering the impact.” NHS dentists across the country are warning that they will have to cut services for patients or even reduce staff numbers.

One practice in Tyneside has said that “it’s another nail in the coffin of NHS Dentistry.” Another practice warned “the recent changes to Employers NI and raising of the living wage will lead to bankruptcy and breakdowns.”

The Liberal Democrats are calling for the government to exempt NHS dentists and those providing vital health and care services, including GP surgeries, social care providers, hospices, charitable providers of health and care, and pharmacies, from this tax rise.

Liberal Democrat Health and Social Care spokesperson, Helen Morgan MP said:

The government has pulled the rug out from under crucial public health services without thinking twice.

It’s shocking that this careless decision has been taken with no regard to the impact it would have on NHS dentists. Many will have no choice but to cut services and staff numbers.

NHS dentists and other health and care providers must be exempted from the Chancellor’s tax increase. Without reversing the hike, the government’s plan to rescue our health service is a plan in name only.

Chair of the British Dental Association, Eddie Crouch said:

When millions can’t access NHS dentistry it’s utterly reckless to heap new costs on struggling practices without even considering the impact.

The Treasury failed to grasp that primary care is delivered by thousands of small businesses. Each requires immediate answers on how they’re expected to balance their books.

Thames Water: we need to see an outright ban on exec bonuses whilst sewage scandal drags on

Responding to reporting that the regulator Ofwat is expected to say on Thursday a £195,000 bonus awarded to the boss of Thames Water should not be paid for by customers, Liberal Democrat Environment spokesperson Tim Farron MP said:

The fact that Thames Water is paying out any bonuses in the first place is an utter disgrace.

It is a welcome shock that Ofwat is actually acting to protect bill paying customers for once after proving completely toothless in cracking down on these polluting firms for years.

Even when the regulator does act against this broken industry it does so in the meekest possible terms. A Chief Exec receiving hundreds of thousands of pounds in bonuses whilst the firm they run is on the brink of collapse is beggars belief.

We need to see an outright ban on water company bosses bonuses whilst this scandal drags on and Ofwat replaced by a new regulator with real teeth to crack down on this industry once and for all.

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31 October 2024 – today’s press releases

  • Ed Davey: Exempt social care from National Insurance tax hike
  • Budget: online gambling tax “a missed opportunity” for fairer NHS and care funding
  • Govt makes new commitment to create a ‘national cancer plan’ at Lib Dem led debate
  • Scot Lib Dems respond to government ditching pilot of juryless trials

Ed Davey: Exempt social care from National Insurance tax hike

Liberal Democrat Leader Ed Davey has called on the government to exempt social care from the employer’s National Insurance tax rise.

The Chancellor has provided extra funding for the NHS and other public sector organisations to cover the cost of the tax rise. However, the vast majority of care providers are private and so won’t benefit from this help.

98% of care providers – 18,000 organisations – are small employers. The Liberal Democrats have said care providers including care homes and those providing care in people’s homes should be exempt from the National Insurance tax hike.

Liberal Democrat Leader Ed Davey said:

Hammering small businesses with a tax hike is the wrong choice. It will hit people’s wages and jobs, but it also risks worsening the NHS crisis by hiking costs for care providers and pushing some to the brink.

It just shows that yet again the government seems to have forgotten about care. At the very least, the Chancellor should be exempting social care from this costly jobs tax.

Budget: online gambling tax “a missed opportunity” for fairer NHS and care funding

Liberal Democrat Leader Ed Davey is calling on the Government to double the tax on online gambling firms as a “much fairer” way to raise money for the NHS and social care.

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Reforming National Insurance Contributions

There has been much talk recently about how we are going to raise money to fund public services, and National Insurance Contributions (NIC) is usually the option the Treasury takes. This is predominantly because the public see NICs as something distinct from general taxation.

However, continually raising NICs hurts the income of working people, depresses wages and is generationally unfair.

NICs is only levied on those aged 65 and under, this explains to an extent why it is still seen as a contribution rather than a tax. However, with life expectancies rising and insufficient pension savings, people are working much longer. Raising …

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Hammond is right to break the Conservatives’ National Insurance pledge

Philip Hammond’s decision to raise National Insurance contributions (NICs) for self-employed people has been the most eye-catching and controversial aspect of the budget. No less captivating for a Liberal Democrat has been our party’s response. Lib Dems are understandably keen to hammer the Tories for breaking a manifesto promise. And MPs have been quick to paint themselves as the defenders of entrepreneurs and small business people (though patronising them as “White van man” is probably unwise).

For all that, the Chancellor’s policy is right – though it goes only a tiny way to treating all workers equally and fairly. Let us look first at the tax break and then deal with some objections.

  • Employees pay class 1 national insurance at 12% on earnings from £155 to £877 a week and 2% on earnings above that. The weekly sums are supposed to equate to £8,060 and £43,000 a year.
  • Employers also pay 13.8% on top of what the employee pays. Despite the myth that “employers pay” and that this comes out of profits, this is a tax on employed people’s wages. This is the biggest part of the injustice in the tax system and the chancellor has not touched it.
  • Self-employed people pay class 4 national insurance at 9% on profits between £8,060 and £43,000 and 2% on profits above £43,000.
  • Self-employed people also pay class 2 national insurance at a flat rate of £2.80 a week if they earn over £5,965 a year. So silly is this policy that George Osborne killed it (from April 2018). Interestingly, as part of that it was announced that class 4 national insurance would be increased to compensate, so there is some cover for Mr Hammond’s move.
  • Those incorporated as companies are able to take their income as dividends rather than salary, and so avoid NICs altogether.
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