Labour is eyeing a fresh battleground with the Conservatives ahead of the next general election - National Insurance.

Sir Keir Starmer, Labour leader, along with Liz Kendall, the shadow work and pensions secretary, tested the waters today, criticizing the Conservatives' long-term goal of eliminating National Insurance Contributions (NICs).

While Labour did not oppose the recent cuts to NICs in the Budget, the party sees an opportunity to challenge the Conservatives on their economic competence by highlighting their ambitions regarding National Insurance.

Labour aims to counter the Conservatives' narrative on economic stewardship by attaching a hefty £46bn price tag to their plan to abolish NICs.

Sir Keir has labeled this as an "unfunded pledge," despite Chancellor Jeremy Hunt's clarification that such a move would only occur under favorable fiscal and economic conditions and would not be immediate.

Liz Kendall emphasized the need for transparency regarding funding sources, highlighting that even a commitment a fraction of this size by Labour would face scrutiny on financial viability.

Labour argues that cutting NICs could jeopardize health expenditure and pensions, as a significant portion of NICs funds social security and pensions, and any cuts would necessitate raising other taxes or borrowing.

Labour's focus on NICs stems not only from the desire to respond to the diluted green prosperity plan but also from recent post-Budget focus groups revealing concerns among voters, particularly regarding pensions.

Although Labour aims to position itself as the party for pensioners, the Conservatives have pushed back, with Jeremy Hunt accusing Labour of scaremongering and underscoring that NICs receipts do not dictate NHS budgets or pension values.

The debate over NICs sets the stage for a political clash in the next election, but the outcome is uncertain, with the Conservatives arguing that targeting NICs reductions at the working population could incentivize workforce participation and boost productivity. Photo by The Crown Prosecution Service, Wikimedia commons.