Grant Shapps insists government have 'collective position' on tax rise after reports of Rees-Mogg and Sunak disagreement

Grant Shapps has insisted the government have a collective position on tax rises in an interview with GB News after reports the Leader of the House of Commons Jacob Rees-Mogg and Chancellor Rishi Sunak disagreed on planned rises to National Insurance.

The Daily Telegraph yesterday said the Commons leader told Rishi Sunak at Wednesday’s Cabinet meeting that the increase must be scrapped to stem the rising cost of living crisis engulfing the Government.

However, the Transport Secretary told GB News: "We have a collective position which is that we think it’s absolutely right we do two things.

"Which is one, clear up the very big backlog of operations and procedures that haven’t been able to take place because the NHS has been so remarkably dealing with coronavirus, and two make sure we deal with the long term problem of social care.

"Where people can lose their homes for example if they have dementia and have to pay for their long term care.

"But that doesn’t apply if you have different type of illness and you’re able to pass on your home.

"So we’re fixing that. And we’re doing it through a rise in National Insurance.

That’s the decision we’ve made, and we think we’re making an important historic point here by righting that wrong and of course it will then be for the Chancellor to decide how he makes the figures stack up."

He added, "No, that’s the decision we’ve made and that is what will happen."

The Prime Minister faced questions from all parties – including his own – over the issue in the Commons.

Boris Johnson insisted the Government had taken steps to help people and also “keep this country open, keep our economy moving”.

He said: “We will continue to look after people throughout the pandemic.”

But Labour’s deputy leader Angela Rayner countered: “Prices for everyday goods are soaring out of control, hard-earned savings will be hit and the wages of working people won’t go as far.”

Ms Rayner said “serious solutions” were needed to stop people “falling into poverty or debt” as a result of inflation.

The head of the Resolution Foundation think tank said last month that families would face a £1,200 hit by April “from soaring energy bills and tax rises”.

The organisation’s chief executive Torsten Bell said: “So large is this overnight cost-of-living catastrophe that it’s hard to see how the Government avoids stepping in.”

But Downing Street suggested on Wednesday that there are not any imminent plans to help keep energy prices down for customers.

The Prime Minister’s official spokesman said: “I’m not aware of any further changes at the moment, but obviously we keep it under review, we are listening to those most affected.”