The planned rise in national insurance contributions will push inflation higher, MPs have warned Boris Johnson in a report.
Inflation hit 5.4 per cent in December, the highest rate in 30 years, and is expected to rise further by April, when the 1.25 per cent NI rise will come into effect.
Households are already under pressure as prices rise in shops and energy bills continue to go up, sparking fears of an impending cost-of-living crisis.
In its report on chancellor Rishi Sunak’s autumn budget, the Commons Treasury Committee said the NI rise will drive inflation up and cause prices to rise even higher.
The MPs also noted that the Bank of England has raised interest rates since the budget in October and is likely to raise them again, driving up mortgage costs for millions of homeowners.
This story is from the January 27, 2022 edition of The Independent.
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This story is from the January 27, 2022 edition of The Independent.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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