NIC hike will cause deep economic damage, says think tank

Labour plans to raise National Insurance Contributions next year will cause
permanent damage to the UK economy. according to a study from a right-leaning

Policy Exchange believes that a raise in NICs, to be confirmed in the Budget
this week, will cut the economy much deeper and for longer than any other form
of taxation and urged chancellor Alistair Darling to reconsider the hike.

It argues that a 2% rise in NICS could lead to a fall in GDP of 2% after
three years and suggested other tax rises instead, such as tax on debt, reports

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