Families and businesses in Pembrokeshire are facing £13 million a tax bombshell this year due to the government’s hike to national insurance, research by the Welsh Liberal Democrats has revealed.

National Insurance payments went up from 12.5 per cent to 13.25 per cent, on Monday, April 6, after Boris Johnson’s decision to break a Conservative manifesto promise and hike the tax.

The UK government says that the decision will raise £39 billion over the next three years to help reduce the Covid-induced NHS backlog and later reform adult social care for the long-term.

However, analysis of official figures by the Welsh Liberal Democrats states that families in Pembrokeshire are set to pay out an estimated £5.2 million more in National Insurance contributions.

This comes to an average of almost £90.30 per household, at a time when families are already facing soaring heating bills.

The Conservatives’ broken promise is also set to hit high streets across Pembrokeshire hard, with a £4.97 million tax hike for local businesses including shops, restaurants and cafes.

Welsh Liberal Democrat leader and Mid & West Wales Senedd Member Jane Dodds MS said: “Families in Pembrokeshire are being crippled by the worst cost of living crisis in a generation, struggling to put food on the table and afford sky-high energy bills.

“The last thing they need is an unfair tax raid. Yet the Conservatives are piling on the misery by breaking their promise not to hike up national insurance, in a move that will hit our community hard.”

The Welsh Liberal Democrats have set out plans to ‘kill two birds with one stone’ by slashing the top rate of VAT to 17.5 per cent this year. The move would save families an average of £600 and give businesses a boost by encouraging spending and keeping prices low.

“The Welsh Liberal Democrats are fighting for a fair deal that would put money back into people’s pockets through an emergency tax cut,” said Ms Dodds.

“Not only would it help everyday families, but also small businesses in Wales which are a vital part of the economy and major employers.”