Labour’s Shadow Science Secretary Andrew Griffith has warned that a potential rise in National Insurance Contributions (NICs) for employers under a Labour Government would be “another body blow” to business.
As Chancellor Rachel Reeves faces mounting pressure over the upcoming Budget, Business Secretary Jonathan Reynolds has refused to rule out a possible rise in employer National Insurance rates.
Speaking to Sky News at the weekend, Reynolds suggested that Labour’s promise not to increase National Insurance in the party’s manifesto was “a reference to employees”.
He added: “There’s a lot already in the manifesto, but you’ll have to wait for the detail of the Budget… this will be a budget for growth.”
Andrew Griffith warned of Labour’s possible increase to employer National Insurance contributions
PA / GB News
Speaking on GB News, Griffith criticised Labour’s understanding of the business environment, stating: “It’s another body blow for business now we’re hearing all the small print that they never said during the election.”
“They made a very clear commitment that they wouldn’t put tax on work and absolutely National Insurance for business is a tax on work.”
Griffith’s criticism extended beyond potential tax increases. He expressed concern about Labour’s approach to business, stating: “This Government really doesn’t understand business.
“They’re hosting an investment summit, but it’s much more about how you create a business environment. We left the economy in decent shape. It was our Government that made the UK a science and technology superpower. They are 100 days in and what we’re hearing about is a tax on jobs, which would break their manifesto promise.”
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Reeves could also be considering a significant reduction to tax-free pension withdrawals
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Griffith also highlighted recent Labour proposals on workers’ rights, claiming they would allow employees to “take your employer to an employment tribunal” shortly after starting work.
The Shadow Science Secretary criticised Labour’s economic plans, suggesting they might “fiddle the definition of debt” to increase spending.
He warned this could deter foreign investment, saying: “Any investment from overseas is welcome, but they’re not going to do that if you then go and put up taxes on capital, taxes on people that invest here but don’t live here, and try and raise more money overall in the budget.
“You’ve got to create a proper environment and one of the challenges is this Government just doesn’t understand business.”
Andrew Griffith said there isn’t a ‘single member of cabinet that’s had a career in business’
GB News
He added: “But it just comes across a whole slew of things that they’ve been doing many more pieces of red tape on business, around employment law, reversing some of the things that have made strikes harder over the years, so that you have to have a majority of workers actually supporting the strike. They’re trying to roll back on that.
“The big one, of course, is the budget. So there’s no point welcoming hundreds of businesses as this, as our Government did to the United Kingdom, to get them to invest.”
Griffith concluded by emphasising the importance of creating a proper business environment, asserting: “I don’t think there’s a single member of the Cabinet now that’s actually had a career in business.”