UK high street bosses urge chancellor to cut cost of employing young people
Summary
UK retail and hospitality leaders, including Tesco and Marks & Spencer, asked Chancellor John Healey to lower the costs of hiring young workers in his upcoming budget. They want the threshold for paying national insurance contributions (Nics) to be raised to £6,000 to help create more jobs and support high street businesses.Key Facts
- Major UK retailers and hospitality businesses met Chancellor John Healey to discuss labor costs.
- Employers want to raise the earnings limit for paying national insurance from £5,000 to £6,000 per year.
- The lower threshold was introduced by Healey’s predecessor and is blamed for fewer jobs for young and part-time workers.
- Retail and hospitality groups also requested relief on business rates to ease financial pressure.
- Healey showed willingness to listen but has not committed to major tax changes yet.
- Some Labour MPs want capital gains tax (tax on profit from selling assets) rates raised to match income tax rates, but Healey rejected this over concerns it could reduce investment.
- The current capital gains tax rates are lower than income tax rates, with recent increases done by the former chancellor, Rachel Reeves.
- Retailers warn that raising employment taxes further will increase costs for consumers and harm job growth.
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