Opposition to possible government plans for tax increases from Assembly

There are approximately 5.11 million income taxpayers, and an estimated 6 million National Insurance payers in London this year.

The cost of living, rising inflation, and energy bills is cumulatively having a negative impact, and Londoners simply cannot afford to bear any additional costs.

The Government’s manifesto committed to not raise income tax, VAT or National Insurance, as pledged in May 2024 and consistently since that time.

The London Assembly has today opposed any potential tax increases and is calling on the Mayor to lobby the Government to uphold its promises on tax over the course of the whole Parliament.

Neil Garratt AM, who proposed the motion, said:

“Tax rises are hammering Londoners, London businesses, and the financial health of our city.

“That is before we come to the fact that it is a breach of the Government’s own manifesto promises.

“We need a champion for London who will stand up for the city and lobby the Government against these tax hikes, and I am pleased that the Assembly has supported my motion calling on the Mayor of London Sir Sadiq Khan to do exactly that.”

The full text of the motion is:

This Assembly recalls the Government’s manifesto commitment not to raise income tax, VAT or National Insurance, as pledged in May 2024 and consistently since that time.

This Assembly recognises there are around 5.11 million income taxpayers, and an estimated 6 million National Insurance payers in London this year. This Assembly is particularly concerned about the potential impact to Londoners if this manifesto commitment was abandoned, given the negative funding reviews London is specifically facing and the anxiety many will feel around this speculation.

This Assembly also notes that the cost of living, rising inflation, and energy bills is cumulatively having a negative impact on Londoners right now, and is concerned that Londoners simply cannot afford to bear any additional costs.

This Assembly wishes to recognise that last year’s £40bn billion worth of tax hikes, particularly the increase in employer’s National Insurance, shed almost 45,000 payroll jobs in London. The Government abandoning its manifesto commitments and raising taxes again would have a disastrous effect on personal finances, inflation, jobs, business confidence and economic growth.

This Assembly also wishes to note the Chancellor’s comments in November 2024, when a promise was made that this was a “once in a generation Budget”, the Government would not be “coming back with more tax increases” and that “we now need to live within the means we have set ourselves”.

This Assembly strongly opposes the Government abandoning its manifesto commitments, and calls on the Mayor to lobby the Government to uphold its promises on tax over the course of the whole Parliament.

The meeting can be viewed via webcast or YouTube.

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