Cost of national insurance rise could fix 14m potholes, say Tories
It is the second Conservative attack this week on the national insurance rise due to come into effect on Sunday.
A “black hole” in local council budgets caused by the increase in national insurance could pay for fixing 14 million potholes, the Conservatives have said.
The Tories claimed the gap between the cost of the tax rise and the extra support given to local councils in compensation would result in residents “paying more and getting less”.
Pointing to an estimate from the Local Government Association, the Tories said the increase in employers’ national insurance contributions would cost local government £1.8 billion, mostly through higher bills from external providers.
With just £515 million in compensation from central government, councils will need to find £1.2 billion – enough to repair 14 million potholes or hire 49,000 refuse workers, the Conservatives said.
It is the second Conservative attack this week on the national insurance rise due to come into effect on Sunday, following a press conference in which Kemi Badenoch and shadow chancellor Mel Stride criticised the move as a “jobs tax”.
At a press conference on Monday, Mrs Badenoch declined to say whether she would reverse the increase.
Shadow local government secretary Kevin Hollinrake said: “Labour’s jobs tax will be disastrous for local government and local residents.
“With Rachel Reeves plunging authorities across the country into a black hole of her own making, it is inevitable councils will shift the pain onto residents with higher council tax or cut services.
“So, once again, it is clear that Labour’s ideological obsession with higher taxes will leave local residents paying more and getting less.
“When you vote Labour, you get trash, so only a vote for the Conservatives on May 1 will deliver lower taxes and better services.”
A Labour spokesperson said: “The numbers are clear: Conservative councils on average charge households £302 more than Labour councils.
“When Labour entered government, we were left with a £22 billion black hole in our public finances, with local services pushed to breaking point. It’s time Kemi Badenoch came clean and told the public what she’d cut if she doesn’t agree with our investment in the NHS and other public services.
“Thanks to the action our Labour Government has taken, local government is receiving £69 billion of funding this year to stabilise councils and invest in services for local people.”
