Tory MPs today piled in behind Jacob Rees-Mogg after he urged the PM to scrap the looming £12billion tax hike to ease the cost of living crisis

Tory MPs today piled in behind Jacob Rees-Mogg after he urged the PM to scrap the looming £12billion tax hike to ease the cost of living crisis

Tory MPs today piled in behind Jacob Rees-Mogg after he urged the PM to scrap the looming £12billion tax hike to ease the cost of living crisis.

Conservatives back the Commons leader after he spoke at yesterday’s Cabinet meeting. The Commons Leader warned that the national insurance increase planned for April could not be justified, while families struggle to pay their heating and food bills.  

According to reports, Mr Rees Mogg suggested that the increase of 1.25 percent to finance the NHS catch up after Covid reforms and the social care reforms be scrapped. He also pointed out the possibility for saving money in civil service.

Rishi Sunak (Chancellor) is thought to have scrapped the idea for a rethink of the levy, noting that it had to come from somewhere.

Today’s round of interviews saw Transport Secretary Grant Shapps insist that the decision was already made and that there was a “very strong case” for tax increases to help fund healthcare and health care. 

This clash is a reminder that the government must find ways to address the rising gas and oil prices in the wake the pandemic. 

Labour MPs and Tory MPs have called for the VAT to be reduced on energy bills. However, the premier is denying the possibility. There are rumors that the help will be more targeted at low-income households.  

Johnson will meet with members of the industry next week to discuss the situation. He is likely to attempt to personally take control of the crisis, having met with firms after they demanded substantial taxpayer support from Business Secretary Kwasi Kwarteng.  

Boris Johnson (pictured at PMQs yesterday) is expected to try to take personal charge of the cost of living crisis next week by holding meetings with the energy industry

Boris Johnson, pictured yesterday at PMQs, is likely to attempt to personally take control of the crisis in the cost-of-living next week through meetings with representatives from the energy sector

Allies of Mr Rees Mogg insisted that he was a ‘true supporter’ for the PM and refused to discuss his involvement in Cabinet. 

He’s made it clear that he is unhappy about the tax hikes and highlighted the fact that the burden of taxes will continue to be one of the most severe ever. 

MailOnline was told by allies that he had been “cheated” by the refusal of the PM to comply with calls for stronger Covid curbs prior to Christmas.

The Cabinet finally made the decision to reject hiking NI, which was welcomed by senior Tories.   

MailOnline was told by John Redwood, former minister: ‘I think there’s a lot of support for the Tory back benches.

“It would surprise if Cabinet members weren’t discussing this. This is the topic that the country and back benches are talking about.

“The Cabinet must change its mind.” They were the ones who drafted the manifesto that ruled out any national insurance increase.

Sir John pointed fingers at Mr Sunak and said he was obsessed with unreliable forecasts by officials.  

‘The Treasury (abandoning NI rise) is what blocks it, quite incorrectly. He said that the Treasury was being guided by Office for Budget Responsibility. It has repeatedly been grossly wrong in all of its forecasts for many years.

“Their tax increases are now sandbagging recovery and paradoxically, will result in less revenue than we would have if growth was achieved with lower taxes rates.

Chancellor Rishi Sunak is believed to have slapped down the idea of a rethink on NI - pointing out that money for the NHS and care had to be found somewhere

Chancellor Rishi Sonak was believed to have dismissed the idea of a rethink about NI – pointing that money for NHS care and the NHS had to come from somewhere.

“Their policy has been deeply destructive. They need to reconsider because they and the country are saying that we can’t afford to raise our national insurance. This will force us to work harder in April, when our electricity and gas bills will go up.

A senior Tory MP stated that their initial response was “Well done Jacob”. MailOnline heard from another senior Tory MP, that Jacob had to start being Jacob.

‘It is reassuring that people in the Cabinet are asking these questions…

“Why are we creating a new tax, and why do we have to bungle up NI? When we could be focusing on getting the economy moving and getting people into work and creating wealth in that way.

The Chancellor’s response is what’s interesting. This man is said to believe in tax reduction.

He added that many people were asking why no one in Cabinet was Conservative.’…

“What Jacob says is the opinion of most Conservative MPs, even those who are in government.”

“When we do something Conservative, we rise in the polls. People should look at cutting taxes in order to increase income and growth, as well as reducing spending. As you all know, being Conservative is a good thing.

Business leaders warned about spiralling energy prices, which could cause higher shopping costs and add two percentage points to inflation.

An almost 5500-company survey by British Chambers of Commerce revealed that 33% of respondents expect their prices will rise over the next 3 months, as more energy is added.

The energy price cap hike means that households could see their electricity and domestic gas bills rise up to 50% by April.

Last night, Mr Johnson rejected calls to stop green levies from household bills in an effort to relieve consumer pressure.

Energy company executives demanded that the VAT be removed and bills are rewritten at yesterday’s meeting with Kwasi Kwarteng, Business Secretary.

They also asked the Government to provide loans so they can in turn help customers and for an increase to the £140-a-year warm homes discount available to the poorest households.

The Prime Minister’s spokesperson said, “I don’t know of any other changes at the moment. But obviously, we keep it under consideration and are listening carefully to those who are most affected.”

When asked if green levies on bills would be maintained, he said: “There is no plan to change that approach.” The Prime Minister seemed to also rule out eliminating VAT from fuel this week, noting that it wouldn’t be in the best interests of those who are most desperate.

Energy industry bodies warned that the April increase in domestic oil prices could result in a 2 percent rise in living expenses.

Inflation was at its highest point in ten year, according to figures published last month. It reached 5.1% in November and December.

Emma Pinchbeck, chief executive of Energy UK, stated that there is an overall price risk for the whole economy. It doesn’t only affect energy retailers.

“It is very likely that Treasury itself will have to make a decision on what to do as this affects not just energy retailers but the entire economy. The inflationary effect of energy prices going up in this manner could range from one to two percentage points.

According to the British Chambers of Commerce, firms face a “huge headache” due to continuous supply chain disruptions, rising inflation, and increasing energy prices.