Oct 16, 2024, 11:01 PM
Oct 13, 2024, 12:00 AM

Labour Minister hints at national insurance rise for employers

Provocative
Highlights
  • Jonathan Reynolds clarified that Labour's pledge not to raise national insurance contributions applies only to employees, not employers.
  • Keir Starmer did not dismiss the possibility of increasing employers' NICs, raising concerns about Labour's tax commitments.
  • Critics argue that raising employers' NICs would contradict Labour's manifesto and negatively impact job growth.
Story

In the UK, Labour's business secretary, Jonathan Reynolds, indicated that the party's manifesto pledge not to raise national insurance contributions (NICs) applies only to employees, leaving the possibility of increasing employers' NICs open. During an interview on Sky News, he emphasized that the manifesto specifically referenced taxes on working people, which includes employees and income tax. This statement has sparked speculation about potential changes in the upcoming budget. Labour leader Keir Starmer also refrained from ruling out a rise in employers' NICs during a recent parliamentary session. Shadow work and pensions secretary Mel Stride criticized the idea of raising employers' NICs, arguing that it contradicts Labour's commitment to not increase national insurance. He described such a move as detrimental to job growth and productivity, suggesting that Labour has limited options for tax increases without breaching their manifesto commitments. Stride further dismissed the government's claims regarding a significant financial shortfall left by the Conservatives as unfounded. The discussion around NICs highlights the tension within Labour regarding tax policy and the potential implications for the party's credibility and economic strategy as they prepare for the budget announcement.

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