NI to be renamed?

Ben Gummer will introduce a Ten Minute Rule Bill on Tuesday calling for the change, which he says is designed to highlight the fact NI is a second form of income tax and should be merged with income tax, an idea the Chancellor is understood to be "attracted to" say Harris & Co accountants Northampton

Gummer said: ‘Changing national insurance to Earnings Tax is a very simple first step to doing what most people think is a good idea, which is merging it with income tax. I’ve thought for some time that one of the easiest ways of getting more simplicity in the tax system is just being more transparent about tax. Taxpayers are consumers – both parties have recognised that for some time, so if we give them a better handle on what they are paying and where it goes, you only enhance the conversation that you have with politicians.’

The Chancellor is understood to be ‘attracted to the idea’. First introduced in 1911 as a means of paying for benefits including state pensions, NI currently works out at about 12% of income, plus an additional 2% for earnings above £41,450.

The Ten Minute Rule is process which allows for a brief introductory speech of no more than 10 minutes and one of the same length opposing the motion to be made in the House of Commons after question time on when the House is likely to be full. It will not result in any legislation, but is seen as a means of making a point on the need to change the law on a particular subject.