Higher national insurance payments will leave low-wage frontline workers possibly more than £ 1,000 a year at a disadvantage, while depriving companies of the money needed to invest, according to the latest analyzes.
The combination of higher national insurance contributions (NICs), universal credit reductions and a freeze on income tax personal allowances would take £ 1,040 a year from the average supermarket worker, according to Labor. The retail industry is the UK’s largest private employer. For hospitality workers, nurses and social workers, the hit is bigger at around £ 1,100.
Keir Starmer said the figures showed the impact of government policies on people’s everyday lives and suggested that the Conservatives “put the very richest in front of working people who have to pick up the bill”.
The Labor leader was angry over last week’s announcement of a 1.25 percentage point increase in NICs, saying it would not “solve the social care crisis, will not clean up our NHS and will not protect homeowners from to have to sell their home to pay for care ”.
In a speech Monday at Alliance Manchester Business School, Tony Danker, CEO of the business lobby group CBI, will warn that higher corporate taxes and lower investment are not a plan for economic growth.
“After the pandemic, we in the business community believe we need to pay our fair share to tackle the debt to Covid,” Danker will say. “Therefore, many business leaders accepted the jaw-dropping six-point increase in corporation tax announced in March.”
But he will say that there is now a real risk that the government will continue to turn to corporate taxes to “bear the burden”, and the choice of national insurance to finance social care is the latest example of this.
“I am deeply concerned that the government believes that corporate taxation – perhaps more politically tasty – has no impact on growth,” he says. “It is not. Raising corporate taxes too far has always been self-defeating, as it prevents further investment.”
A government spokesman said: “This government has consistently backed companies – including through our £ 400bn plan for jobs – and we have shown that we are committed to supporting business investment, extending the annual increase in investment allowance by even more. one year and introduce the super-deduction – the largest two-year corporate tax credit in modern British history. ”