New figures have revealed 669 businesses in Torquay and Paignton will be hit by Labour’s Jobs Tax, which came into effect on Sunday.
Labour’s National Insurance Jobs Tax will increase the rate of employers National Insurance Contributions by 1.2 percentage points and reduce the threshold, so businesses start paying the tax sooner. This amounts to a £25 billion tax raid on businesses.
The Conservatives have campaigned tirelessly against the imposition of this tax and attempted to work with the government to make smaller businesses exempt – but Labour Members of Parliament refused to back down from their tax raid, even voting down attempts to exempt charities like Torquay’s Rowcroft Hospice from it.
The Government’s independent forecaster, the Office for Budget Responsibility (OBR) confirms this Jobs Tax will hit working people through lower wages. Using their figures, it can be calculated that families will be £3,536 worse off over the life of this Parliament because the Jobs Tax will result in lower wages as it squeezes businesses’ profits.
The OBR also confirm the Jobs Tax increases the cost of employing someone by £800 and an average business will see their tax liability increase by £26,000. This is on top of the £5 billion a year cost of imposing Labour’s Employment Rights Bill.
The National Insurance Jobs Tax hits businesses at a time of great uncertainty in the face of tariffs and other bill rises such as energy bills and business rates which is why the Conservatives campaigned against it.
Commenting, Former Torbay MP Kevin Foster said:
“Labour’s National Insurance Jobs Tax is more than just a broken promise, it is a sledgehammer to jobs and wages in our bay, especially in our tourism and hospitality sector.”
“The cost of this tax rise will not just be measured in the contributions of employers, but lost jobs and lost opportunities for those looking for their first job.”
“Combined with business rates bills increasing and inheritance tax changes hitting family businesses, this Labour Government appears determined to hit our bay hard.”
Mel Stride MP, Shadow Chancellor of the Exchequer, said:
“Labour’s Jobs Tax unleashes war on business, and we know working people who will be £3,536 worse off over this Parliament as a result of this tax grab.
“Before the election, the Labour Chancellor promised not to raise people’s taxes – including National Insurance. Rachel Reeves has broken that promise.
“From today, it means lower wages, higher prices and job cuts. Labour don’t understand business and we are all paying the price.”
