959 businesses in Stretford and Urmston will be hit by Labour’s Jobs Tax from Sunday 6th of April 2025.
Labour’s National Insurance Jobs Tax will increase the rate of employers National Insurance Contributions by 1.2 percentage points and reduce the threshold, so businesses start paying the tax sooner. This amounts to a £25 billion tax raid on businesses.
The Conservatives have campaigned tirelessly against the imposition of this tax and attempted to work with the government to make smaller businesses exempt – but Labour Members of Parliament refused to back down from their tax raid.
The Government’s independent forecaster, the Office for Budget Responsibility (OBR) confirms this Jobs Tax will hit working people through lower wages. Using their figures, it can be calculated that families will be £3,536 worse off over the life of this Parliament because the Jobs Tax will result in lower wages as it squeezes businesses’ profits.
The OBR also confirm the Jobs Tax increases the cost of employing someone by £800 and an average business will see their tax liability increase by £26,000. This is on top of the £5 billion a year cost of imposing Labour’s Employment Rights Bill.
The National Insurance Jobs Tax hits businesses at a time of great uncertainty in the face of tariffs and other bill rises such as energy bills and business rates which is why the Conservatives campaigned against it.
Commenting, Jonathan Coupe, Chair of North Trafford Local Conservatives said:
“Labour’s National Insurance Jobs Tax is more than just a broken promise, it is a sledgehammer to jobs and wages in Stretford and Urmston.
“Only the Conservatives will stand by the 959 businesses in Stretford and Urmston who will face the brunt of this tax.
“Labour have no business experience so they do not understand it is businesses – not the government – who create jobs and wealth across the country. This tax does the opposite.”
