Rachel Reeves accused of covering up impact of National Insurance raid on workers

Chancellor accused of cover-up Impact of National Insurance raid on workers.

While all tax policy changes are accompanied by an impact assessment known as a Tax Information and Impact Note (TIIN), it has been revealed that the Government has not published one alongside the £25bn National Insurance raid on employers announced in the Budget.

TIINs assess the likely impact of a policy change on the economy on families, individuals, equality groups and those with characteristics protected under the Equality Act.

Before the general election, Labor repeatedly He promised not to raise taxes “working people” is included in its manifesto.

Chancellor said Budget delivers on Labor Party promise because NI increases fell on employers, not employees’ payrolls.

However, the independent Office for Budget Responsibility’s forecast accompanying the Budget said 80 per cent of the NI increase would be passed on to workers through lower wage increases, while the other 20 per cent would be felt through higher prices.

Last week, the Institute for Fiscal Studies think tank said the policy will disproportionately affect women Because they are overrepresented among the lowest-income segments most likely to be affected by change.

Shadow chancellor Mel Stride said: “It is unacceptable that Labor has withheld this critical analysis of the impact of yet another of its harmful policies.”

The impact assessment of the policy is expected to be published in the coming months, along with the legislation to be implemented. National Insurance change was drafted.

Government sources claimed the long delay between announcing the policy and publishing the impact assessment was a result of the changes not coming into force until spring 2025.

This comes after the Government was accused of “breaking the rules” by not publishing the law. Equity impact assessment of winter fuel allowance changes.

The government was forced to release the document following a Freedom of Information request. Its own estimates showed that seven in 10 disabled pensioners would be deprived of their winter fuel payments due to the Chancellor’s cuts to funding.

The Conservatives described the debacle as “appalling” and suggested Ms Reeves may have breached the ministerial code.