Wandsworth to be hit by £126,813,761 National Insurance bombshell as cost of living crisis bites
- Typical family in Wandsworth set to pay an extra £356.50 in national insurance contributions (NICs) this year as cost of living crunch hits.
- Local businesses are also set to feel the squeeze with a £76,088,257 tax hit.
- Lib Dems demand emergency VAT tax cut to put money back in the pockets of struggling families.
Families and businesses in Wandsworth are facing a £126,813,761 tax bombshell this year due to the Conservative hike to national insurance, research by the Liberal Democrats has revealed.
National Insurance payments went up this week (April 6) from 12% 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 predict 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 Wandsworth area are set to pay out an estimated £50,725,505 more in National Insurance contributions, or an average of £356.5 each, at a time when families are already facing soaring heating bills.
Tax raid on local businesses
The Conservatives’ broken promise is also set to hit the high street in Wandsworth hard, with a £76,088,257 tax raid on local businesses including shops, restaurants and cafes.
Wandsworth 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 put money in the pockets of struggling families 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.
Hitting our community hard
“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,” said Mark Gitsham, a local Liberal Democrat spokesperson.
According to Sue Wixley, another local spokesperson: “These elections are an opportunity to send a message to this Conservative government that they can’t afford to take people in Wandsworth granted any longer.
“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."