𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Andy Burnham is under fresh pressure to scrap Labour’s “damaging” National Insurance raid on employers ahead of the Budget. New polling of more than 500 UK business leaders shows 74% said reversing the increase would have a positive impact on their business.

Meanwhile, 56% said they would be more likely to invest in the country, according to a survey by the London Chamber of Commerce and Industry (LCCI). The organisation’s chief executive, Karim Fatehi, said: “These results prove what businesses and our members have long been saying: the previous administration’s employer National Insurance increase did real damage to businesses. It knocked their confidence, making them reluctant to invest, hire, and grow.

“The new Chancellor has bold ambitions to make the UK a growth nation with more investment, more innovation and more jobs, but you don’t achieve growth in every postcode by hitting the nation’s job-creators with taxes that make it more expensive to hire people.

“For a business weighing up taking on an extra pair of hands, or taking a chance on a young person who has been not in education, employment or training, this extra cost has often resulted in that role not being filled. Entry-level and part-time roles have clearly been affected, directly feeding the national not in education, employment of training (NEET) crisis the Government is trying to tackle.

“Reversing this tax rise would meaningfully lower the cost of hiring. It would help to reduce the number of those who are NEET and help lower the cost of the welfare bill.

“That is why we are calling on the new Chancellor of the Exchequer to reverse this damaging tax increase and deliver a Budget that backs the job creators, rather than raiding them to balance the books.”

Former chancellor Rachel Reeves announced a hike in employers’ National Insurance from 13.8% to 15% in her 2024 Budget.

But the move has been widely criticised by businesses and opposition parties who have warned about the impact on wages and hiring while Britain grapples with sluggish economic growth.

Tory Shadow Chancellor Andrew Griffith said: “Labour’s jobs tax has been a disaster for businesses and for everyone seeking a job.

“It has driven up the cost of hiring, just like Labour’s unemployment act, and the inevitable result has been higher unemployment and fewer opportunities for young people to get their first job.

“Labour do not understand business. They think they can fix the economy by hiking taxes. The Conservatives want to cut taxes and create the environment for businesses to grow and create jobs, so we can get Britain working again.”

It comes as Chancellor John Healey will deliver his first budget on October 28 and has pledged to “draw a line” under rising costs for businesses.

A Treasury spokesperson said: “The Chancellor is fully focused on his priorities, to give families and businesses a bit of breathing space, back British jobs, and drive growth in every postcode, underpinned by a commitment to meet the fiscal rules.

“As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”

YouGov polled 509 people from August 12-25.