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Press Release

National insurance plans - step in right direction

29 March 2010

Proposals to reduce the additions to National Insurance contributions are a step in the right direction, but the full increases should be scrapped altogether.

Reacting to Conservative tax plans published today (Monday), the British Retail Consortium (BRC) said the one per cent increase in National Insurance planned for next April should be dropped, as it is a tax on jobs. Retailers provide three million jobs in the UK but as staff costs are a major part of their overheads, any significant increase will limit their ability to create and maintain jobs.

The BRC said the Conservative plans to limit some elements of employer and employee National Insurance payments are a welcome move, but should go further by scrapping the full increases.

British Retail Consortium Director General Stephen Robertson said: "Any increase to National Insurance is a tax on jobs and undermines retailers' ability to maintain and create employment. Raising National Insurance will hamper retailers' ability to maximise their contribution to the recovery.

"The Conservative proposals to reduce National Insurance payments are a step in the right direction, but should go further by scrapping the full increases. We'll need to examine the detail of how the reductions in National Insurance will be paid for, but it must focus on public spending efficiencies, rather than tax hikes."



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British Retail Consortium

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