The 6th of April is now just two weeks away, when the
Labour Government’s National Insurance rise for employers will start. HMRC
estimate that these measures will impact around 1.2 million employers and the
independent Office for Budget Responsibility say this will result in an average
annual tax increase in excess of £800 per employee. The OBR also state that
employers will pass on 60% of the higher costs to workers and consumers via
lower wages and higher prices.
Labour’s tax on jobs has already had a negative impact on
business confidence and the economy and will likely lead to higher
unemployment. But it’s not just businesses and working people that are going to
suffer, we all will. I’m particularly concerned about the impact on local
authorities and charities.
Three weeks ago, the large Labour majority at Crawley
Borough Council forced through an annual budget that made drastic cuts to
services and inflation busting rises in fees and charges. The Labour
Government’s NI rise will cost the council over half a million pounds each and
every year. In seeing the damage being done to local authorities and to
charities, I had tabled a motion for this meeting which read as follows:
“The rise in Employer National Insurance Contributions due
to take effect in April 2025 is set to cost Crawley Borough Council £522,000
for the 2025/26 financial year. It is also estimated by the National Council
for Voluntary Organisations that this rise will cost the UK charity sector up
to £1.4 billion in annual running costs. Locally, Crawley Open House have
stated it will cause their annual costs to rise by £35,000.”
“With council services impacted and charities adversely
affected, Crawley Borough Council calls upon the UK Government to urgently
review their planned National Insurance rise, in order to either exempt local
authorities and charities, or to better compensate them.”
While every Conservative Councillor voted to support my
motion, every Labour Councillor voted against and voted my motion down. They
put stopping any embarrassment for their own Labour Government ahead of trying
to maintain good council services and helping charities.
No comments:
Post a Comment