The Tories have crunched the numbers on Rachel Reeves’ jobs tax, and it’s grim news for ‘working people.’ As the NICs hike kicks in next week, CCHQ calculates that the average household will be hammered by a £3,536 tax rise by the time of the next election. This isn’t an April Fool’s joke…
The Tories estimate firms will pass on 60% of the ‘jobs tax’ costs through lower wages and higher prices (based on OBR numbers). Kemi Badenoch, who’s giving a press conference on the sums today, said:
“Rachel Reeves has gambled with the economy, leaving us dangerously vulnerable to American tariffs. Labour’s unprecedented borrowing spree and record levels of tax mean she has pulled the handbrake on economic growth. The Prime Minister might think this is all just pocket money, but Britain’s working families will certainly notice the £3,500 Labour ministers have cost them.”
Former Treasury minister and adviser to Burnham in the Makerfield campaign Lord Jim O’Neill, who has turned down a role in his government, said Burnham’s first statement Commons was:
“The last thing investors wanted to hear… gilt yields have risen by a 0.25% in one day, which is a lot. We’ve not had that since Liz Truss days… If your country is under the focus of ‘can they come up with a sensible fiscal strategy’ on a day when the markets think ‘well no, you’re not showing any sign of it’ you’re going to have a tough day…if it stays like this your mortgage rate is going up.”