A top minister claimed that the entire Cabinet supported delaying the controversial increase in national insurance to aid families hit hard by the rising cost of living.

Boris Johnson has been urged to reconsider the 1.25 percent increase proposed for April, when homeowners face rising fuel bills, inflation, and council taxes.

A string of senior Tory MPs, business leaders and economists have joined the Daily Mail in calling on the Government to delay or scrap Chancellor Rishi Sunak’s plan.

A senior minister claimed last night that Mr Sunak would have no objection if he stopped the increase.

These men added that the Cabinet could approve the proposal by the Chancellor of cancelling the increase in national insurance contributions.

“There would not be any objections from the Prime Minister because it is very much a Treasury strategy.”

Boris Johnson and Rishi Sunak. Tory MPs who have met the Chancellor about the cost of living crisis have been 'left with the impression' he is trying to distance himself from the hike, The Mail on Sunday reported

Boris Johnson and Rishi Sonak. The Mail on Sunday reports that Tory MPs have been left with the impression that he’s trying to discredit the rise after meeting the Chancellor.

“It’s not the time to raise taxes,” said the Minister of Cabinet. Before we can begin to work out how to balance the budget, we need to see a recovery from Covid. The Chancellor is in control of this situation.

The national insurance increase, which was announced last autumn, will raise £12billion to £13billion a year for the Treasury.

Although it was originally intended to fund social and health care, the majority of the funds for the first three year will be used to clear the post-Covid NHS backlog.

Dominic Raab was seen to be disassociated from yesterday’s policy, but he reluctantly agreed that the policy should enter into effect in April.

Times Radio interviewed him and he said, “I’d rather not have to do that.”

“But we have to, considering the current pandemic as well as the massive financial collapse of our public finances. The only thing I would not do… is to duck, just like previous governments and prime minsters, on the subject of social insurance.

Touker Suleyman said an NI hike will leave families 'facing painful choices' being forced to pick 'food or heating' or 'new shoes for the children or fix the car'

Touker Suleyman stated that a NI increase will force families to make difficult choices. They’ll have to choose between ‘food, heating’ and ‘new shoes’ for their children.

“We will make sure we manage the aging population and dementia issues we are facing. We are the first government and the Prime Minister to grasp this nettle. It is not my intention to slow down on this critically important social reform.

The Mail on Sunday reports that Tory MPs have had to meet the Chancellor over the crisis of the cost-of-living and were ‘left with an impression’ that he wants to distance himself form the hike.

According to a source, Raji called it “the Prime Minister’s tax” which was quite apt to say the least. The impression was that he wasn’t interested in being associated with it.

Kwasi Kwarteng (Business Secretary) stated that in July the government should not increase national insurance contributions to help pay for social assistance. Jacob Rees Mogg (Commons Leader) said this month, however, that the government cannot justify the increase while families face rising costs.

A Government source stated last night that the Government was determined to reform social services, something which had been evaded too long.

The proposed 1.25 per cent rise is due in April, which is when households face a perfect storm of rising energy bills, council tax and inflation

In April, the 1.25 percent increase is expected. This is when household face rising fuel bills, inflation, and council taxes.

The NHS and Social Care Levy are essential to achieve this goal and ensure the NHS has the money it needs to overcome the financial backlogs resulting from the pandemic.

Robert Halfon, Tory MP, was chairman of the Commons education panel and joined an outcry for the increase to be reexamined yesterday.

He stated that he would like for the Government to take a fresh look at the matter, however, he also acknowledged the fact that people want money to be spent on social services and the NHS.

Political and business opposition to the rise is growing, with concerns it will hit pay packets just as energy bills soar – and hamper small firms trying to recover from Covid.

UKHospitality’s chief executive Kate Nicholls stated last night that the timing for the increase was ‘perfect’ in a post-Covid recovery.

She said: “It’s clear that the rise in NICs both for employer and employee will have a substantial impact on hospitality sector.”

Professor Jagjitchadha, Director of National Institute of Economic and Social Research thought-tank said stopping the proposed increase was ‘absolutely feasible’ and “makes a lot of good sense”.

A Government spokesman said last night: ‘We’ve taken decisive and historic action, with our health and social care levy due to raise around £13billion a year. It will be a benefit to all citizens. 

Touker SULEYMAN, Dragons Den panellist writes that tax hike is morally unsound and could lead to economic collapse. 

With innovative solutions like the furlough program and bounce-back loan, the Government did a remarkable job supporting families and businesses during the Covid crisis.

This makes it even more disappointing and surprising that the government seems determined to ruin much of their good work, pushing ahead stubbornly with a 1.25 Percent increase in national insurance just at the wrong time.

It will be effective in April, the month when the energy price cap ends. This could trigger a 50 percent increase in fuel prices. We are living in an economic storm, it is not exaggerated.

Dragons' Den panellist Touker Suleyman in 2018. He said: 'An NI hike will leave employees hundreds of pounds out of pocket, with some families facing painful choices'

Touker Suleyman, Dragons’ Den panellist in 2018, He stated that an NI rise would result in employees being out of pocket by hundreds of pounds, and families having to make difficult decisions.

Inflation – already at a 30-year high – is likely to rise to six or even seven per cent as a result of the spiralling cost of domestic fuel and this will create a cost-of-living crisis that will have devastating effects on millions.

Mortgage repayments are increasing too as the Bank of England raises interest rates in a bid to – ironically – curb inflation.

These increases affect everyone, but they hit working people – those who will be affected by the NI rise – hardest. Farmlough also saw incomes drop for those who did not lose their jobs in the last year.

We are living in anxious times. The repercussions of these events will be felt for several months, even years. Are we really ready to give rise to yet another rising?

A NI increase will result in employees being hundreds of pounds short of their wages. Some families face difficult decisions: heating and food, or new shoes or cars for the kids. Another financial blow is not what they or the economy need.

It is clear that the Government needs to raise the funds to fund the growing cost of running NHS. However, the funding issue for social services must also be resolved. However, these problems have been with us for many decades and will require years of resolution.

The economy is in such an unstable state that it’s not the right time to fix them by imposing a tax on job opportunities. This is both morally and economically wrong.

Not only will it undermine recovery, I fear it could easily tip us into recession, since the blow will fall on both employers and employees, hitting small businesses – the lifeblood of the British economy – particularly hard.

It doesn’t mean you have to accept my word. The highly respected Centre for Economics and Business Research estimates that a typical small business with 50 employees could end up paying an extra £10,000 to £20,000 annually, potentially deterring them from taking on new staff.

Mr Suleyman said: 'I can only assume the Chancellor (pictured) has not talked to anyone involved in the commercial world lately, because if he had he would know that we are all deeply worried'

According to Mr Suleyman, “I cannot assume that the Chancellor (pictured below) hasn’t spoken with anyone in the commercial sector lately. Because if he did, he’d know we’re all very worried.”

This would lead to national job losses of many thousands, and people who are employed will face pay freezes that, when combined with inflation, could result in pay reductions.

The domino effect of less spending on people is detrimental to businesses. Reduced spending in restaurants and shops means lower income from income tax or VAT

The Government – as well as the rest of us – will end up poorer if it goes ahead with its plan.

Businesses are already facing problems after the pandemic. Shops, restaurants, transport firms, and others will still be affected by the desire of many employees to continue working at home.

The combination of long-term issues, like punitive business rate, could push people over the edge.

Because I believe the Chancellor did not speak to anybody in the business world recently, it is safe to assume that he knows we are all very worried.

I talk to fellow business leaders all the time – not one of them is anything but anxious and appalled by this imminent tax increase.

The economists who advised Rishi Sunak on the design of this device were months back, just before Omicron was a more calm environment.

It was not expected that there would be a new variety in the trade before Christmas. But it did – and hard.

Retail and hospitality workers saw Omicron’s impact immediately. We are also seeing Omicron’s impact on trade due to rising energy costs, mortgages and other expenses. Customers are being forced to make cuts and put off buying new items.

You have the recipe for disaster.

We are currently reviewing the salaries of our staff to determine how we can assist them. Not all businesses have the ability to afford it and they will be more difficult as inflation increases.

Deputy Prime Minister Dominic Raab appeared to distance himself from the policy yesterday but reluctantly said it should come into force this April

Dominic Raab was seen to be disaffected by the policy, but he reluctantly agreed that it should enter into effect in April.

It does not directly control rising fuel and energy costs, global inflation, or transport prices. However, it has direct control of the tax rate and when they rise.

Treasury needs to show the same flexibility and agility as during the pandemic. It must adapt to the current situation and postpone the NI hike instead of just continuing.

You can keep it under review for up to six, nine, or longer until you feel the crisis in cost of living has passed.

Unprecedented times have characterized our lives. To keep the economy afloat, they require unimaginable measures.

Encouragement to go back to work by the Government is a good thing.

It has been great to see everyone back out on the streets, and at the shops since the lifting of Plan B restrictions.

If the Government pushes for an NI increase, then those steps back towards recovery will be reversed.

The average person feels financially strapped. They cut back their spending and demand falls. Businesses have to lay off employees.

So recession is born. And with recession comes reduced tax revenues and that’s bad news for the NHS and social care – the very services that the NI rise is supposed to help.

Businesses and people need to be able to bounce back. An NI rise will cripple them – and the economy instead.

You can still adapt and postpone the NI increase. It is my hope that the chancellor will do the right thing.