National Insurance rise means £270,000 added to council's bill
Hounslow Conservatives have reacted angrily to news that tax hikes announced in the Pre-Budget Report will slash £270,000 from the council’s budget.
The Chancellor announced that National Insurance (NI) payments would rise by 0.5% this April and 0.5% again in 2011. This tax on jobs is paid by both employer and employee, meaning that public services such as the council will see their payments to central government increase at a time when government grants are set to fall.
The council will see an additional £270,000 added to its payroll bill by NI from 2011. The tax hike will be paid by all those earning over £20,000, who make up 80% of full time workers in Hounslow. Someone earning £30,000 a year will be £200 a year worse off.
Cllr Peter Thompson said, “Labour have claimed that their tax rises will be paid by those with the broadest shoulders. This is utter nonsense, a family earning £20,000 is not wealthy, and now the majority of people in Hounslow will suffer.
"As for the council we now have a £270,000 gap to plug on top of the expected reductions in funding over the next few years.”
December 22, 2009