GEORGE Osborne has warned Boris Johnson he could be finished if he goes ahead with his controversial National Insurance tax rise.
In a withering attack, he said the PM should be “shrinking the state” not clobbering Brits hit by the cost of living squeeze.
In a withering attack, he said the PM should be “shrinking the state” not clobbering Brits hit by the cost of living squeezeCredit: Getty
He warned the £12billion NI tax raid comes as “incomes are shrinking” and said another way to reduce Covid debt is by slashing the bloated state.
Mr Osborne said: “To his real credit, Boris got the big judgement call on Omicron right — on the economy, I’m less clear.”
Boris could end up like the Roman emperor Nero – who dramatically fell from power after raising taxes to fund a lavish new home — unless he U-turns, Mr Osborne warned.
It came as MPs on the Treasury Committee said the PM has taken a big gamble by hiking taxes.
There is a danger the move will backfire and cause inflation and interest rates to rocket, they warned.
Rishi Sunak’s Budget pushed taxes to their highest since the 1950s while public spending has rocketed to 1970s levels.
At the same time, struggling families have been hit with a massive cost of living crunch — with inflation rocketing to a 20-year high of 5.4 per cent.
The committee said the Mr Johnson’s promise to raise wages is all well and good, but if he doesn’t improve the economy and productivity, he risks fuelling inflation.
A Treasury spokesman said: “We recognise the pressures people are facing with the cost of living and are providing support worth around £12billion this year and next.”