Budget Will Harm Employment, Government Is Warned

25th November 2024

Employment Minister Alison McGovern was warned by business leaders yesterday that the Government's changes to employer National Insurance contributions (NICs) raid will undermine the fight against worklessness by harming job creation.

In a private call with employers' lobby groups, she was told Labour's pledge to get Britain's employment rate to an unprecedented 80% would be held back by the Government’s tax raid.

"Normally, we would be sitting here ready, willing and able to help the 80% employment target but the message [on the call] was that recruitment is now much more challenging with a National Insurance regime that penalises hiring," one source told The Telegraph.

"The Government is pulling in two directions. The extra National Insurance means I can’t employ two part-time apprentices next year," the source added. The number of young people who are not in employment, education or training (Neets) climbed to 946,000 in the three months to September, according to the Office for National Statistics (ONS).

Business leaders on the call are also said to have urged McGovern to reform job centres to ensure they "look at careers rather than just pushing people into any job".

Read the full article from Business Insights HERE