Shadow Treasury Financial Secretary Mark Hoban said it should be a Tory Government’s’ first priority to seek to reverse Labour’s 1 per cent inc rease in NI contributions planned from April 2011.
He said: “It is a tax on employment, it discourages businesses not only from taking on new staff but it increases the cost of staff they already employ, it is a tax that directly hits the bottom line.”
“The increase in employees’ NI contributions means families earning over £20,000 a year will be worse off as well so there is a double whammy affecting the economy as we emerge from recession. That is why we believe it is our first priority to seek to reverse that increase.
“We recognise the anti-competitive impact that the 50p rate has but when I talk to business groups they would rather we focus our efforts on NI rises as a first priority.”