The Business Secretary has hinted the government could increase national insurance for employers at the Autumn Budget.
The Shadow Work and Pensions Secretary Mel Stride has spoken out saying raising national insurance breaches Labour general election manifesto pledge.
Speaking to Sky News Stride said that Labour has “boxed themselves in by going into the general election claiming they were not going to be a party that was going to have to put up taxes.”
He said that Labour are left with little options and raising national insurance for employers is a “very bad tax to go raise because it’s a tax on jobs.”
Read more related news:
Potential decisions of Labour and the recent rate reductions are the biggest concerns for UK investors
Mullins delivers a blow to the Treasury over Labour’s ‘stupid, idiotic tax laws’
Brains and brawn underpin good month as the UK economy grows
He added this “goes totally counter to their manifesto that assured us they would not be putting up national insurance.”
He warned that should Labour raise employer national insurance this will “slow down economic growth” he then argued that the government have “concocted this fictitious black hole” of £22 billion, and they have “talked the economy down at a time when they should be talking it up.”
However Jonathan Reynolds told Sky News that Labour’s vow not to increase national insurance in their manifesto was in “reference to employees.”
The Business Secretary added, “You know that pledge was taxes on working people… there’s a lot already in the manifesto, but you have to wait for the detail of a budget… this will be a budget for growth.”
Stride warned that this will be a “tax on jobs” and Labour “should be” about is “growth and increasing productivity.”
