Lib Dem MP for Brecon, Radnor and Cwm Tawe slams jobs tax with employees in Powys facing a financial hit of nearly £2,273
The rise in employers’ National Insurance has come into effect, with employees in Powys facing an estimated hit of almost £2,273 in total by the end of the decade, as the jobs tax gets passed down to them as lower real wages, Liberal Democrat research has found
At the Spring Statement, the OBR reported that 76% of the rise in employers' national insurance would be passed down to workers through lower real wages.
The research by the Liberal Democrats has found that this means, on average, an employee in Powys would be worse off by roughly £2,273 by the end of the decade, with workers experiencing a hit of nearly £364 in the next year on average.
Brecon, Radnor and Cwm Tawe MP David Chadwick said many local businesses have already contacted him since the Autumn Budget, concerned that they will be forced to cut staff in order to deal with the increased costs. He has also been contacted by local GPs and care home providers with similar concerns
Local Liberal Democrat MP, Mr Chadwick says that high streets could be “on the brink” following the tax hike. He said the Chancellor “must immediately scrap her jobs tax” and is calling on the Chancellor to overhaul the “broken” business rates system to unleash growth in the local area.
David Chadwick said: “The Chancellor’s jobs tax is setting already stretched household finances up for another battering right in the middle of a cost-of-living crisis.
“After years of Conservative economic vandalism, this Labour government is now risking a spate of boarded-up shop fronts on our much-loved high streets, leaving local businesses on the brink of closure.
"The Government cannot go on pretending that their jobs tax won’t hit people’s pockets. Our town centres and hard-working business owners will bear the brunt of this crushing decision.
“Labour must immediately scrap its jobs tax and scrap the broken business rates system. This is the only way to unleash the massive growth potential of Welsh high streets and protect local household finances.”
