Tory MPs have issued a last-ditch plea to Rishi Sunak to scrap a planned National Insurance hike as the Chancellor prepares to deliver his Spring Statement at lunchtime.

       The Chancellor is under huge pressure from Conservative backbenchers to use the fiscal statement to bring forward significant measures to tackle the cost of living crisis.

       Mr Sunak is widely expected to announce a cut to fuel duty but MPs are seeking a broad package of support for struggling families, with many pushing for next month's tax hike to be delayed or axed entirely.

       Mel Stride, the Tory chairman of the Treasury Select Committee, said this morning Mr Sunak "should scrap the proposed increase in National Insurance" as he described it as a "tax on jobs" which will hit both employers and employees.

       Mr Sunak and Boris Johnson have repeatedly insisted the increase will go ahead but reports suggest the Chancellor could increase the threshold at which people start paying NI in order to reduce the impact on the lowest paid.

       The cost of living crisis worsened this morning as the Office for National Statistics published data showing the Consumer Prices Index measure of inflation rose by 6.2 per cent in the 12 months to February, up from 5.5 per cent in January.

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       John McDonnell, the former shadow chancellor, has backed calls for the National Insurance rise to be scrapped but stressed the extra ￡12billion for the NHS and social care would have to be found from another source.

       The Labour MP said increasing taxes on wealth would be one way for Rishi Sunak to generate more money for the Treasury's coffers.

       He told Sky News: ‘I would like the National Insurance rise scrapped but you have to say where else you could find the money for the NHS and social care.

       ‘A number of think tanks, including the TUC, did recommend to the Chancellor at the time, what you can do is basically tax wealth at the same rate as you are taxing income, so in other words tax capital gains tax at the same rate as income tax and that would bring in, the estimate is ￡17billion so actually it would be ideally suited to cover the amount that the Chancellor would want to raise.’

       Mr McDonnell said Mr Sunak's priority at the Spring Statement should be to 'protect people' and to 'inflation-proof' the economy as he suggested imposing rent controls and fare freezes on public transport.

       Mark Harper, the Tory former chief whip, said Rishi Sunak is facing a "difficult balancing act" at today's Spring Statement.

       Mr Harper said the Chancellor recognises the impact of the cost of living crisis but also must build "some resilience" into the public finances so the Government can deal with "whatever the future may throw at us".

       He said the "economic picture is very uncertain" because of Russia's invasion of Ukraine, making it hard to predict what will happen in the short to medium-term.

       He said: “He understands the situation facing consumers and businesses but he also needs to make sure that that inflation outlook – the fact that the interest rate pressures that are going upwards and debt interest is higher – and he also needs to build in some resilience to deal with whatever the future may throw at us.

       “So, those challenges, I think we’re all competing, and provide a difficult balancing act for today, and I think that’s the judgment that I’m confident he will get right when he said sets out his statement at lunchtime.”

       Experts have predicted increased income tax and VAT receipts could give the Chancellor a war chest of as much as ￡50billion to play with.

       Sir Charlie Bean, who until last year was in charge of economic forecasts at the Office for Budget Responsibility, told the BBC that Rishi Sunak "certainly has wiggle room".

       He said: "I think it is worth saying as well, if you look further out, that he also is likely to have some wiggle room, in the October statement he had fixed the levels at which income tax come in, instead of indexing them, that would normally be expected to yield about ￡8billion to him.

       "The higher inflation has turned that into an extra ￡20billion or thereabouts. On top of that higher inflation will raise VAT receipts.

       "So looking three or four years out, he has got somewhere between ￡25billion and maybe as much as ￡50billion to play with, depending on exactly what the OBR’s view of inflation is over the next few years."

       Rachel Reeves, the shadow chancellor, has repeated Labour's calls for the Government not to go ahead with the National Insurance rise.

       Ms Reeves said the increase would be "unfair" on workers, hitting them in the pocket "at the worst possible time".

       She said: "With inflation spiralling even further today, the choice before the Chancellor is clear. As he heads into his Spring Statement, he can either choose an unfair tax rise on working people and business at the worst possible time.

       "Or he can cancel his tax rise, and ease the cost of living hitting families by cutting energy bills by up to ￡600 through bringing in a one-off windfall tax on oil and gas producer profits."

       The British Chambers of Commerce is urging Rishi Sunak to delay the National Insurance increase and to introduce an energy price cap for small businesses in the wake of the latest inflation numbers.

       Suren Thiru, head of economics at the BCC, said the ONS data showed "inflation remains on an historic upward trajectory".

       He predicted the 'inflationary surge will intensify in the coming months" due to the energy price cap rise and the impact of Russia's invasion of Ukraine on energy and commodity prices.

       "The looming National insurance hike risks exacerbating this surge in consumer prices by damaging business cashflow further, leaving many firms with little option but to continue raising prices," he said.

       “It is critical that the Chancellor uses today’s Spring Statement to give firms the financial headroom to keep a lid on prices, by tackling the cost of doing business crisis through delaying the national insurance rise and introducing a temporary energy price cap for small businesses.”

       The Office for National Statistics published data this morning showing the Consumer Prices Index measure of inflation rose by 6.2 per cent in the 12 months to February this year.

       That represents a significant jump on the 5.5 per cent which was recorded in January.

       It is the highest level of inflation seen in the UK since March 1992 when it stood at 7.1 per cent.

       The ONS said inflation had increased across 10 out of the 12 categories that feed into the index, with only communication and education not seeing increases.

       All noises in Westminster currently are that the increase will go ahead.

       There had been speculation at the start of the year that Boris Johnson was "wobbling" on the policy but he and Rishi Sunak penned a joint op-ed at the end of January in which they said the Government "must go ahead" with it.

       Tory MPs have continued to speak out against the tax hike, arguing it cannot be justified at a time when household finances are already under pressure because of the cost of living crisis.

       But axing the policy would represent a major U-turn which would be seized upon by the Government's critics.

       Reports suggest the Chancellor could try to strike a compromise by increasing the threshold at which people start paying NI in order to reduce the impact on the lowest paid.

       Mel Stride, the Tory chairman of the influential Treasury Select Committee, this morning issued a last-ditch plea to Rishi Sunak not to go ahead with the Government's National Insurance rise.

       The increase is due to be rolled out next month but Mr Stride urged the Chancellor to reconsider as he labelled it a 'tax on jobs'.

       Mr Stride was asked during an interview on the BBC's Radio 4 Today programme what he wants to see from Mr Sunak at today's Spring Statement.

       He replied: “I think there are a couple of things. One is on fuel, on diesel and petrol, prices are going up through the roof and I think we can widely expect the Chancellor to reduce the level of duty there just to make it easier for both consumers, individuals, but also for businesses.

       "But I think the second thing is National Insurance. Now, I personally, this is not a view expressed by the committee I represent, but I personally think he should scrap the proposed increase in National Insurance.

       "It is a tax on jobs, it is going to be felt most keenly by both individuals but also by businesses as well but it is likely he is going to do something on the threshold and that will be helping those who are less well off because it will take a number of people out of paying National Insurance altogether and help those lower income families too."

       Good morning and welcome to today's politics live blog.

       It will be a very busy day in Westminster with PMQs at noon, immediately followed by Rishi Sunak's Spring Statement.

       Let's get started.

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