One point the Tories should be hammering home is that the national insurance hike is a far more significant tax rise than the tax on bank bonuses. The one-off tax on banks that pay sizable bonuses will only raise £550 million while in 2010-11 the various national insurance changes will cost taxpayers more than £3 billion and will hit 10 million people, all those who earn more than 20k a year.
The Tories are saying, as they did the last time that Labour announced a national insurance increase, that reversing this tax on jobs will be their first priority in government. But a bit of boldness on this front would be welcome. The Tories should just say they won’t do it if elected as they don’t want a jobless recovery.