Government looking at raising national insurance

The UK government is rumoured to be looking at a potential rise in national insurance contributions to fund a guaranteed minimum level of care for the elderly in the UK. A Green Paper is to be released to the Houses of Parliament next week amid signs that politicians from all sides of the house are now gearing up for a general election. National insurance is one such tax which has crept higher and higher since the Labour government came into power primarily so that they can maintain their promise not to increase income tax.



However, when you also consider that national insurance is already set to increase in 2011 to help fund the growing black hole in the UK public finances can we really believe that any extra funds would only go towards care for the elderly?



Voters will be faced with a stark choice at the next general election, with the Conservative government is adamant that investment needs to be reduced in the public sector and the UK government adamant that ongoing investment increases are essential. They are also very different views on the taxation of UK workers, the black hole in public finances and the underlying strength of the economy. If nothing else, this next election promises to be a very tough battle!