Chief Secretary to the Treasury James Murray has defended the Government's tax policies, including the rise in employer National Insurance and changes to inheritance tax, during a session with the House of Lords Economic Affairs Committee.
Mr Murray acknowledged the controversy surrounding the Autumn Budget 2024, which saw leaks and an early release of an OBR report. He stated that the Chancellor had made her feelings clear about the speculation and that the leak inquiry was underway.
On employer National Insurance, Mr Murray said the decision to raise the rate from 13.8% to 15% from April 2025 was a tough but necessary choice to restore stability to public finances and support the NHS. He noted that the policy is already in place.
Regarding inheritance tax, Mr Murray highlighted adjustments to agricultural and business property relief thresholds. The original plan to limit 100% relief to the first £1million was increased to £2.5million after criticism, maintaining the policy's principle while addressing concerns.
The committee also questioned the Government on U-turns over Winter Fuel Payment cuts, PIP eligibility changes, and Digital ID plans. Mr Murray insisted that despite adjustments, the Government remains committed to difficult decisions for fiscal stability.
