Fury as government DENY hiking National Insurance in the Budget – despite Reeves’ crippling £25bn raid

FURY erupted contiguous aft the Government bizarrely claimed that National Insurance had not been raised astatine the Budget - contempt Rachel Reeves' £25billion raid.

The Treasury sparked bewilderment for posting connected societal media that determination were “no increases to rates of Income Tax, National Insurance oregon VAT”.

Hiking the leader complaint of NICs to 15 per cent and lowering the tax-free threshold to £5,000 arsenic the single biggest revenue-raiser successful the Chancellor's Budget past week.

It is estimated that astir two-thirds of the £25billion deed volition beryllium passed by bosses onto workers done reduced wage increases.

Incredulous apical economist Paul Johnson slammed the tweet, saying: “At champion this is dubious. And that’s being generous. Increasing NI was the cardinal taxation raising measurement successful the Budget.”

Tory Shadow Chancellor Mel Stride has complained to the Treasury’s astir elder civilian servant James Bowler implicit the “misleading information”.

He asked whether neutral officials were “pressured” into publishing the station by Labour advisers.

Tory MP Jack Rankin said: “Is determination not a civilian work codification of conduct? This is simply untrue.”

Economist Julian Jessop called the assertion “grossly misleading”, portion SNP Westminster person Stephen Flynn said: “Why is the Treasury telling fibs?”

Chancellor Ms Reeves utilized her archetypal Budget to hike taxes by £40billion, the bulk of which came from the National Insurance rise.

She insisted she had to rise taxes to enactment the nationalist finances connected a “firm footing” and defended the increases.

She had been accused of breaking Labour’s predetermination pledge not to rise either NICs, income taxation oregon VAT.

Ministers person since insisted that lone referred to “working people”, and truthful the summation to leader National Insurance was not a manifesto breach.

The Office for Budget Responsibility estimates astir 60 per cent of the emergence volition beryllium absorbed by workers.