‘A betrayal’ were the words used by Gedling’s former MP to describe Labour’s national insurance increase for businesses, that he said could lead to the loss of 130,000 jobs.
Former Conservative MP Tom Randall slammed the increase and said he would fight against the tax on behalf of local employers.
The government announced in the October budget that employers’ national insurance contributions will rise to 15% from April 2025 – would also hit charities and local councils.
“Gedling’s economy relies on employers of all sizes,” Tom said.
“And I am sure business people and their families here and across the country will not forgive Labour MPs or the Government for what they have done and the harm they are doing to our local economies and communities.
“But the Labour Government is putting our economy under threat with their betrayal of business. On Small Business Saturday we should be celebrating local enterprise. Instead, Labour MPs are clobbering local small businesses with more taxes.
Yesterday, MPs were given the chance to back a Tory proposal to end the new tax, which the Office for Budget Responsibility estimates will cost businesses an additional £800 per employee and lead to lower wages, fewer jobs and higher prices for families.
“I’m pleased that my Conservative colleagues in Parliament are doing all that they can to be an effective opposition to stop Labour’s National Insurance Jobs Tax,” Randall added.
“But led by Keir Starmer, Labour MPs – including Gedling’s Michael Payne and Sherwood Forest’s Michelle Welsh – voted to push on with the tax which some experts claim could lead to the loss of 130,000 jobs across the country.”
The former said he would continue to back businesses in Gedling and fight against the tax.
And he also urged people to sign the petition at stopthejobstax.com if they were against the rise.
Chancellor Rachel Reeves admitted it would not be “easy” for businesses to “absorb” the increase in employers’ national insurance contributions that was announced in the budget.
Speaking at The Yorkshire Post’s great northern conference in Hull yesterday, the chancellor said: “We made a commitment during the general election…that we wouldn’t increase taxes on working people, because over the last few years it has been working people that have had to bear the brunt of tax increases.”
Ms Reeves cited Labour’s election campaign promise not to increase income tax, VAT or national insurance on employees, saying the party had “managed to stick to that manifesto commitment”.
