Rachel Reeves’ National Insurance tax raid will not raise “a single penny” for public services, according to analysis by the shadow chancellor.
Businesses were hit with an increase in employers’ NI from 13.8 per cent to 15 per cent in October’s Budget, with the aim of raising £25.7 billion a year.
But Mel Stride, the shadow chancellor, claimed the Chancellor’s “economic mismanagement” meant all the expected money either was not raised in the first place or has been frittered away.
So, some will indeed be raised it’ll just not be spent upon what you think it should be?
He said: “The Chancellor promised £25 billion from her jobs tax, but we’re likely to end up with less money for our public services because of Labour’s economic mismanagement.
Much of the mismanagement would have happened without the tax, no?
Mr Stride also said that if the Government could get a grip on welfare……….
His party only had thirteen years to show how it could have been done. However their mismanagement was more generalised and it would be churlish to focus on the mere economic aspect of their lengthy clusterfuck of a period of office.
Yes, the Conservatives’ dreadful track record in government makes their criticisms of Labour harder to take seriously but having said that, the excessive pay awards to unionised public sector workers was an expensive trap that they might have avoided. There’s a limit to how many black holes la Reeves can fill with private sector taxes so she should stop digging new ones.
The NI tax increase will result in less people employed, so more claiming unemployment benefits. It’s conceivable that it could be a net negative, though we have yet to see a big enough spike in unemployment to suggest this to be true. Youth employment rates are however looking very bad, and the unemployment rate is being masked by the increases of people who are incentivised to be “ill” rather than unemployed. Even so it’s not going to be a net negative, but certainly generating a lot less income than predicted.
Moar tax means even moar mismanagement. Which means even moar tax is needed.
Tax something => get less of it.
Subsidise something => get more of it.
A child could understand.