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08 Apr 2010
The UK's tax regime is becoming a key battleground for election hopefuls as Labour remains committed to national insurance contributions rises, a move which has been shot down by Conservatives.
Business groups have protested at the changes set to come into force next April which will see a 1 percentage point rise for both workers and staff.
The Tories have seized on this and used it as a political bludgeon against the Labour party.
Speaking at the Warburton breadmaking headquarters in Bolton, Tory Leader David Cameron said:
"If we put up National Insurance contributions on every job, employers will have to pay more for them. That’s bound to be a tax on jobs."
"National Insurance hits the cost of every job and also hits everyone in the pocket. We say that’s not the right answer."
Putting up the cost of employment would lead to fewer jobs being created and would also lead to jobs being lost.
"It would be an economy killer, a recovery killer, a jobs killer," Cameron added.
Earlier this week, the CBI urged whoever wins the battle for No. 10 to establish a more competitive regime for business taxes.
However Labour has insisted the NI rise is a key part of efforts to make a dent in the £167bn public spending deficit.
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Killer?
I think there are worse things David: how about the securitisation of trillions of dollars of sub-prime mortgages; the £50bn takeover of ABN Amro; the £150bn deficit - if we can recover from this then we can carry on recovering after a 1% hike in NI
Posted by: Andrew Tjaardstra, 08 Apr 2010 | 00:00