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PRESS RELEASE: Guildford Borough to be hit by £35,387,898 National Insurance bombshell as cost of living crisis bites

April 6, 2022 3:25 PM

Guildford Liberal Democrats
Contact: Guildford Liberal Democrats - office@guildfordlibdems.org.uk
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Families and businesses in Guildford Borough are facing a £35,387,898 tax bombshell this year due to the Conservative hike to National Insurance, research by the Liberal Democrats has revealed.

National Insurance contributions by employees went up this week (April 6) from 12.5% to 13.25%, after Boris Johnson's decision to break a Conservative manifesto promise and hike the tax.

The latest figures from the Office for Budget Responsibility predicts that the country is facing a £10.9 billion tax hit this year from the move, with around 40% of this being paid by workers and the rest by businesses.

It means that families in the Guildford area are set to pay out an estimated £14,155,159 more in National Insurance contributions, or an average of £242.80 each, at a time when families are already facing soaring heating bills.

The Conservatives' broken promise is also set to hit the High Street in Guildford hard, with a £21,232,739 tax raid on local businesses including shops, restaurants, cafes and beauty/hair salons.

Guildford Liberal Democrats have set out plans to "kill two birds with one stone," by slashing the top rate of VAT to 17.5% this year. The move would save families an average of £600 and give businesses a boost by encouraging spending and keeping prices low. The party has put the issue at the heart of their elections campaign which launched this week.

Liberal Democrat Parliamentary Spokesperson for Guildford, Cranleigh and our Villages, Zöe Franklin said:

"Families in our area are being crippled by the worst cost of living crisis in a generation, struggling to put food on the table and afford sky-high energy bills.

"The last thing they need is an unfair tax raid. Yet the Conservatives are piling on the misery by breaking their promise not to hike up National Insurance, in a move that will hit our community hard.

"The Liberal Democrats are fighting for a fair deal that would put money back into people's pockets through an emergency tax cut. Our plans would kill two birds with one stone, helping those struggling to make ends meet while giving our treasured local businesses the shot in the arm they need."

ENDS

Notes to Editors:

A breakdown of the estimated NICs hit by local authority area can be found here.

Household data: ONS - Estimated number of households in Great Britain in NUTS 1, NUTS 3, English and Welsh local authorities and Scottish council areas, 2020