Londoners facing a £2.2b National Insurance hike, say Lib Dems

Lib Dem leader Sir Ed Davey is calling for an emergency VAT cut

Londoners are facing a £2.2bn National Insurance (NI) hike, Liberal Democrat analysis shows.

The capital will bear a bigger burden than any other region in the UK, with 20% of the costs falling on Londoners' shoulders.

The research shows small businesses, including cafes and shops, will pay an extra £1.3bn and workers an average of £243 extra annually.

Lib Dem leader Sir Ed Davey is calling for an emergency VAT cut.

Slashing the top rate from 20% to 17.5% for one year would save families an average of about £600 each, he said, which would boost small businesses by encouraging spending and keeping prices down.

'Inflicting misery'

Launching the party's local elections campaign in Watford, Sir Ed said the NI hike would cost the borough £20m "at a time when people can least afford it".

Speaking ahead of the visit, he said: "Families and businesses across London are facing soaring heating bills and the biggest squeeze on incomes on record.

"Yet the Conservatives have chosen to make things even worse by landing them with an eye-watering £2.2bn tax bill.

"By breaking their promise not to raise National Insurance, the Conservatives are inflicting misery on people who are already struggling to make ends meet."

A Conservative Party spokesman described the stance as "hypocrisy" pointing out the Lib Dem-run council in Kingston charges the highest tax in London.

He added that it is Liberal Democrat "policy" to increase income tax, including for basic rate taxpayers.

Labour said it had launched its local London election campaign accusing the government of "abandoning" London during the cost of living crisis.

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