Labour MP seeks to redistribute wealth by raising NI for the rich

Labour MP John McDonnell has tabled amendments to the National Insurance Contributions Bill, to be debated this Thursday (31st January), that would remove the ceiling on national insurance (NI) payments. Currently high earnings are only charged NI at 1%, rather than the standard 11%

John McDonnell said:

“Recent reports confirm that Britain is now more unequal that at any time since the 1940s. Inequality is disfiguring our society and the gap has only widened under New Labour. Inequality affects people's life chances, from their educational attainment and career to their health and life expectancy.

“I have tabled amendments which would mean those who can afford it would pay more. Over 90% of the working population would see no change. But I also want there to be a national debate about how the extra £8.88bn could be spent to the benefit of everyone.

“The LRC has published some spending options to address inequality, and I hope we start a debate about the real life inequalities that New Labour has failed to address.”

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