The CBI has urged John Healey to raise the earnings threshold at which employers start paying national insurance contributions (NICs) from £5,000 to £6,000, claiming the change would create 41,000 jobs, mostly for young and entry-level staff.
In a submission to the Treasury ahead of the Budget on 28 October, Britain’s biggest business lobby group said the move should form part of a near-£4bn tax cut for the private sector. It would partially reverse the £25bn rise in employer NICs announced by Rachel Reeves in her first Budget two years ago.
The CBI calculates that lifting the secondary threshold, which covers the bulk of employees, would cost the Treasury up to £3.9bn a year, offset by a £3.4bn boost to growth and an extra £800m in tax revenues from higher employment.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
