MPs support national insurance hike for employers amid ‘jobs tax’ warning

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Government moves to increase employer national insurance contributions have been supported by MPs, amid Tory claims the “jobs tax” will damage the economy. Labour will discover that not only will this tax damage the economy, but they will increasingly lose the trust of the British people Shadow chancellor Mel Stride The Treasury estimates the policy could raise £25.7 billion a year, although the Office for Budget Responsibility believes the actual amount of money generated for the Exchequer will be around £16.1 billion by 2029/30 as firms curb wage rises, cut hours and reduce profits while public sector employers get compensation in their budgets for the change. Treasury minister James Murray told the Commons: “We recognise that we are asking businesses to contribute more and we recognise that that will have impact, but it will be up to individual businesses to decide how to respond to those changes.” Our priority in this Bill is to restore stability to our economy, repair the public finances to fix our economy, support long-term economic growth Treasury minister Tulip Siddiq Intervening, Labour MP Clive Lewis argued there is a “need for better targeting”, adding: “Is there not a better way to target perhaps micro-businesses and social enterprises, to better able manage what is quite a tough Budget for some of them?” In response, Mr Murray said “tough decisions have had to be taken throughout this Budget”. He said: “Partnerships like GP practices, charities like hospices, businesses like pharmacies, dentistry and social care providers – none of those key healthcare services, which the NHS cannot exist without, share in that exemption to national insurance contribution rises.” Reform UK MP Rupert Lowe said: “This national insurance increase, and threshold cut, is simply a tax on jobs in the private sector.