Labour to push ahead with National Insurance hike
The government has vowed to press ahead with its controversial plans to raise National Insurance next year despite widespread criticism from businesses, which have labelled the move a “tax on jobs”.
In its election manifesto, published today ahead of polling day on 6 May, the Labour Party has stuck with its plan to raise National Insurance Contributions by 1 per cent from April next year to protect public services and pay down the UK’s huge financial deficit.
The government has pledged to increase the rate of the National Minimum Wage at least in line with average earnings, and to introduce a £40 a week Better Off in Work Guarantee for those claiming benefits.
Fathers will have a right to a flexible, paid month off work after the birth of their child, and the mandatory retirement age of 65 is to be phased out with older workers also granted the right to request flexible working.
The government has promised to cut the cost of regulation to business by £6bn by 2015 and would create a Small Business Credit Adjudicator to make sure no small firms are unfairly refused bank loans.
As part of a commitment to small businesses, Labour has said it will set up a Growth Capital Fund to help those requiring £2m to £10m of investment, although there are no specific commitments to the hospitality sector.
Other pledges include:
Labour has ruled out any more increases in the rate of basic of higher income tax during the next parliament.
Government departments will look to introduce the higher Living Wage for employees.
There will be no increase in VAT on food.
Free of tie option for pubs by 2011.
Protection for pubs on which local communities rely via support package.
