GR Direct - Sony - Save up to £300 on selected Bravia OLED & LED TVs
Monday 27 May 2024
 10.8°C   ESE Gentle Breeze
Ocean Kinetics - The Engineering Experts

Politics / Carmichael urges caution on Conservatives’ proposal to scrap National Insurance contributions

Isles MP Alistair Carmichael.

NORTHERN Isles MP Alistair Carmichael has spoken up against the Conservative government plans to abolish National Insurance contributions.

Last week, during his budget speech, chancellor Jeremy Hunt revealed the ambition of the Conservative party to abolish National Insurance contributions (NICs) over time.

Prime minister Rishi Sunak said it was his “long-term ambition” to scrap the “double taxation in work” by income tax and National Insurance and “end that unfairness”.

In response to this, Labour described the Conservative plan as an “unfunded £46 billion promise” that would nonetheless need to be covered by means of other taxes.

As the issue is becoming increasingly divisive, Shetland and Orkney MP Carmichael voiced his concern about this proposal in parliament on Wednesday evening.

He said National Insurance was “identifiably different from the other taxes we pay” as “the symbol of our shared obligations – what we owe each other as a society and as communities in support throughout our lives”.

This he said becomes particularly pressing in relation to pensions and other benefits. Speaking in the house, Carmichael said: “It is a substantial commitment to make – £46 billion – and we do not yet know where that money would come from.

Although National Insurance functionally works more or less like any other tax, spent by the government in whichever way seems fit, from health to civil service salaries and defence, it differs in fact “as a matter of intent and purpose”.

“The point of national insurance is that we pool and share resources geographically and generationally. We pay our stamp on each payslip, trusting that, when the time comes for us to retire, someone else will continue to pay taxes that will fund our pensions.”

Stressing this point, he continued: “We have obligations to those we know, to those we do not know, to generations that are older than us, and to those who are yet to be born.

“That is the system in which the national insurance contribution has a demonstrably significant and different impact than other taxes. It is part of the tapestry of government and public life in this country.”

Become a supporter of Shetland News

Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.

Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.

Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has  over 600 supporters  who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.

Your contribution will ensure Shetland News can: -

  • Bring you the headlines as they happen;
  • Stay editorially independent;
  • Give a voice to the community;
  • Grow site traffic further;
  • Research and publish more in-depth news, including more Shetland Lives features.

If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.



Subscribe to a selection of different newsletters from Shetland News, varying from breaking news delivered on the minute, to a weekly round-up of the opinion posts. All delivered straight to your inbox.

Daily Briefing Newsletter Weekly Highlights Newsletter Opinion Newsletter Life in Shetland Newsletter

JavaScript Required

We're sorry, but Shetland News isn't fully functional without JavaScript enabled.
Head over to the help page for instructions on how to enable JavaScript on your browser.

Your Privacy

We use cookies on our site to improve your experience.
By using our service, you agree to our Privacy Policy and Cookie Policy.

Browser is out-of-date

Shetland News isn't fully functional with this version of .
Head over to the help page for instructions on updating your browser for more security, improved speed and the best overall experience on this site.

Interested in Notifications?

Get notifications from Shetland News for important and breaking news.
You can unsubscribe at any time.

Become a supporter of Shetland News

We're committed to ensuring everyone has equitable access to impartial, open and quality local journalism that benefits all residents.

By supporting Shetland News, you play a vital role in ensuring we remain a pivotal resource in supporting the community.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.