Rachel Reeves’ recent manoeuvres regarding National Insurance (NI) contributions have exposed a glaring dishonesty in the Labour manifesto. Despite promises not to raise taxes on working people, Reeves is now hinting at increasing NI contributions from employers, a move that is nothing short of a betrayal.
1. Manifesto Breach Labour’s manifesto clearly stated that there would be no increase in National Insurance, income tax, or VAT for working people
Yet, Reeves is now considering raising employer NI contributions, a move that directly contradicts this promise. This is a blatant breach of trust and a clear indication that Labour’s commitments are not worth the paper they’re written on.
2. The Hidden Tax on Workers Raising NI contributions from employers is not just a tax on businesses; it’s a tax on working people. Employers faced with higher NI costs will inevitably pass these costs onto their employees through lower wages, reduced benefits, or even job cuts
This indirect taxation hits workers just as hard, if not harder, than a direct tax increase.
3. Impact on Pension Contributions The proposal to levy NI on employer pension contributions is equally damaging
This move would discourage employers from contributing to their employees’ pensions, undermining the financial security of millions of workers. It’s a stealth tax that erodes the very foundation of retirement savings and places an additional burden on working people.
4. Economic Consequences The economic fallout from these proposed changes cannot be overstated. Higher NI contributions for employers will stifle job creation, reduce investment, and slow economic growth
At a time when the economy is already fragile, this is the last thing we need.
5. A Call for Accountability Rachel Reeves and the Labour government must be held accountable for their deceptive practices. The public deserves transparency and honesty, not broken promises and hidden taxes. It’s time for Labour to come clean and admit that their policies are a direct attack on the very people they claim to represent.
In conclusion, Rachel Reeves’ plans to raise NI contributions from employers and on employer pension contributions are a betrayal of Labour’s manifesto promises and a hidden tax on working people. It’s time for the government to rethink these damaging policies and prioritise the well-being of the nation’s workforce.
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