Inside Politics: Tory revolt over social care plan as MPs return to Westminster

Reports say PM will press ahead with plan despite internal dissent, writes Matt Mathers

Monday 06 September 2021 03:19 EDT
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(PA)

It’s back to school for MPs in parliament today following the summer recess. Boris Johnson faces a very unsettled class of Conservatives, who are angry at his plans to fund social care reforms. As is often the case, it’s those at the back of the room causing trouble, with former chancellor Philip Hammond the latest high profile Tory to warn NI hikes could hurt the party in the future. Labour too is opposing the move, saying a fairer funding policy is needed. Everybody agrees that social care has to be reformed. But there is now a growing consensus that those who break their backs providing it shouldn’t be among those made to pay.

Inside the bubble

The House sits from 2.30pm, starting with questions to Gavin Williamson, the education secretary. There is also a debate on the remaining stages of the National Insurance Contributions Bill. Johnson gives a statement to MPs on the Afghanistan crisis and will defend the government’s handling of the evacuation operation.

Coming up:

-Shadow social care minister Liz Kendall on BBC Radio 4 Today at 8.10am

-Armed forces minister James Heappey on ITV Good Morning Britain at 8.30am

Daily Briefing

TORY REVOLT: Johnson’s plan for social care is the only story in town today as business resumes at Westminster. Philip Hammond, the former chancellor, joined a chorus of senior Tories yesterday warning against an increase in National Insurance contributions, saying “it has got to be wrong” to ask young working people to subsidise the care of the elderly wealthy. There was also a thinly veiled warning from Jacob Rees-Mogg, leader of the House. Writing in the Daily Express, he recalled George Bush Sr’s broken “read my lips” promise not to raise taxes, adding: “Voters remembered these words after President Bush had forgotten them.” Bush would go on to lose the 1992 election to Bill Clinton. Keir Starmer has signalled Labour will not back the plans, saying a fairer funding solution needs to be found.

YES, PRIME MINISTER: As well as opposition among senior Conservative MPs, Johnson’s cabinet is also split on the issue with Liz Truss, the international trade secretary and Kwasi Kwarteng, the business secretary said to be among those not backing the tax hike. Flexing their muscles, No 10 briefed some of the Sunday papers that a cabinet reshuffle could go ahead sooner than expected, in an apparent bid to quell dissent. In a further warning, sources have told this morning Times that the PM is in “invincible mode” and will press ahead with the plan despite opposition. Several other cabinet ministers are said to knowingly oppose the plan, which would break a Tory manifesto pledge not to raise taxes. Amid speculation about a reshuffle, however, no minister is expected to fight the plans, according to the Times.

SUPPLY CHAIN CRISIS LATEST: A “perfect storm” of rising building material costs and delivery delays threatens to bring the construction industry to a halt, industry leaders are warning. The cost of building materials has soared by 20 per cent, exacerbating the problems facing an industry worth around £117bn to the UK economy. Meanwhile, worker shortages and delayed deliveries within the UK, coupled with a global supply crunch and new Brexit red tape, are already crippling construction projects across the UK and feeding into the price rises. Bosses say the problems could choke the UK’s post-lockdown economic recovery.

RECOVERY RISK: Construction accounts for around 6 per cent of the UK’s economic output, and severe delays to projects could have a “knock-on effect on the recovery if construction companies aren’t completing projects quickly”, said Andrew Goodwin, chief UK economist at Oxford Economics, a consultancy firm. “If people stop doing building work because they know they’ll face delays, that will start to have a real effect on the wider economy,” he added. In related news, widespread staff shortages caused by post-Brexit immigration policies, training shortfalls and the Covid pandemic could continue for another two years, putting a brake on the UK’s recovery from lockdown, leading business organisation the CBI has warned.

PANJSHIR FALLS: The Taliban has taken complete control of Panjshir province in Afghanistan, according to the Islamist militant group’s spokesperson Zabihullah Mujahid on Monday, even as resistance forces denied this claim and vowed to “continue the fight”. The province is the last remaining stronghold against the Taliban in the country. It is the only province the Taliban was unable to seize even as it took control of the rest of the country last month.

FAMILY PLANNING BOOST: Prospective parents are to be given the right to keep frozen eggs, sperm and embryos in storage for as long as 55 years while they decide when is best to start a family. Health secretary Sajid Javid announced that the government plans to scrap the current rule which requires destruction of unused material after 10 years. He said the change would remove the pressure of the “ticking clock” on would-be mothers and fathers who have opted to freeze eggs and sperm but may not be ready to make use of them. Under the new system, prospective parents will be given the option on keeping or disposing at 10-year intervals.

On the record

“An increase in national insurance contributions is asking young working people, some of whom will never inherit the property, to subsidise older people who’ve accumulated wealth during their lifetime and have a property, and, on any basis, that has got to be wrong.”

Former chancellor Philip Hammond on NI hike to fund social care.

From the Twitterati

“Ministers are sometimes the last people to know when a reshuffle is coming. Sense across Whitehall tonight is that something is shifting, but there’s so much stuff kicking off with social care, Covid, budget, spending review that no one is certain.”

Financial Times Whitehall editor Sebastian Payne on cabinet reshuffle rumours.

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