There is a lot in Labour’s latest PBR to dislike but the hike in National Insurance is the one that got me.
If you start a business you get a big shock the first time you employ someone. When you hand them their pay cheque you also send off another one to HMRC, it contains their income tax, their NI contribution, your NI contribution and if they’re a recent graduate their student loan repayment. It is often a sum of money not much smaller than the one the employee receives.
I tell you something it really stings.
National Insurance is an employment tax, the money is not ring-fenced for health and pensions. It is a tax, pure and simple. And Labour have just announced that they are putting it up.
I find it hard to believe that at a time of record and rising unemployment the government would be so short sighted as to increase the financial cost of employing people.