"We did make the decision to increase national insurance in my first budget, and that's because we needed to properly fund public services, including the National Health Service, which got a £29 billion-a-year uplift. So, I do recognise, and it's a valid argument to say that that should not have happened. But if that didn't happen, we wouldn't have been able to put the money into the NHS and reduce waiting lists."
"And reducing waiting lists in the NHS is also good for business, because it means that more people are available for work, and the workforce is healthier. But I do recognise there are particular issues around youth unemployment."
Rachel Reeves, Chancellor of the Exchequer, has recognized legitimate concerns that her decision to increase employer National Insurance contributions could discourage companies from hiring, especially among young workers. Youth unemployment in Britain is approaching one million, raising concerns about employment prospects for younger generations. Business groups have warned that higher employer contributions will increase hiring costs and reduce recruitment during an economically fragile period. Despite acknowledging these valid arguments, Reeves defended the tax increase as essential for funding public services, particularly the NHS, which received a £29 billion annual uplift. She emphasized that reduced NHS waiting lists benefit businesses by keeping workers healthier and more available for employment, though she recognized particular challenges surrounding youth unemployment.
#national-insurance-contributions #youth-unemployment #public-sector-funding #nhs-investment #business-hiring-costs
Read at London Business News | Londonlovesbusiness.com
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