While many took January to embark on their new year’s resolutions, the prime minister remains resolutely committed to his old ways. He made economic growth the central plank of his pitch to the nation, but with growth flatlining, employment numbers down, and borrowing costs up, he is failing miserably. It is time for Starmer to change tack on economic policy.
Few could rival Reeves’ disastrous first few months as chancellor.
She has spearheaded a raid on the country’s most vulnerable, leaving millions of pensioners without heating over the winter. She has failed to deliver on Labour’s pledge to “kickstart economic growth” in her first few months in the job, despite having inherited the fastest-growing economy in the G7. And she is foolishly committed to increasing government borrowing despite record-high borrowing costs.
With 21 per cent of the public having a “very negative” view of Reeves, the prime minister should reflect on his party’s commitment to deliver economic growth. If Starmer is serious about getting Britain moving in the right direction, he needs to take a radically different approach. He must turn his back on the tax-and-spend ideology which has dominated his party for so long.
This must come in the form of reversing the employer’s National Insurance contributions increase. Labour promised in the run-up to the election it would not raise taxes on working people. Yet, they fail to recognise working people will bear the brunt of this tax hike. Employers will be left with two choices: reduce internal costs through cutting salaries or jobs; or raise the price of goods and services. Both solutions hurt working people.
While the rise may seem small at just a 1.2 percentage points, the impact this will have on businesses is catastrophic. Research has indicated, in total, the National Insurance tax hike will cost more than £1.4 billion annually. By the end of this parliament, therefore, almost £7 billion will have disappeared from the UK economy.
Businesses are now being forced to compete in an economy which is blatantly anti-business, with 63 per cent of firms concerned about tax increases. Coupled with a 0.1 per cent reduction in payrolled employment, it is clear that businesses are responding to the chancellor’s policies negatively. Yet, the government seems reluctant to take off their rose-tinted glasses and face up to their failure.
Starmer has said for months he is going to put working people first; that his budget will see the poorest in Britain fare better than they have done previously. But, when Reeves stood at the despatch box in October last year, it was the worst off who were thrown under the bus. A national insurance hike which, on the surface, only affects employers but in reality will leave less money in the pockets of working people.
The prime minister has two choices. He could continue to tax people up and down the country, which will only disincentive investment and stifle economic growth. Or he can take the other path.
He can face up to the fact that his chancellor has failed and reverse her indefensible tax hikes.
While many took January to embark on their new year’s resolutions, the prime minister remains resolutely committed to his old ways. He made economic growth the central plank of his pitch to the nation, but with growth flatlining, employment numbers down, and borrowing costs up, he is failing miserably. It is time for Starmer to change tack on economic policy.
Few could rival Reeves’ disastrous first few months as chancellor.
She has spearheaded a raid on the country’s most vulnerable, leaving millions of pensioners without heating over the winter. She has failed to deliver on Labour’s pledge to “kickstart economic growth” in her first few months in the job, despite having inherited the fastest-growing economy in the G7. And she is foolishly committed to increasing government borrowing despite record-high borrowing costs.
With 21 per cent of the public having a “very negative” view of Reeves, the prime minister should reflect on his party’s commitment to deliver economic growth. If Starmer is serious about getting Britain moving in the right direction, he needs to take a radically different approach. He must turn his back on the tax-and-spend ideology which has dominated his party for so long.
This must come in the form of reversing the employer’s National Insurance contributions increase. Labour promised in the run-up to the election it would not raise taxes on working people. Yet, they fail to recognise working people will bear the brunt of this tax hike. Employers will be left with two choices: reduce internal costs through cutting salaries or jobs; or raise the price of goods and services. Both solutions hurt working people.
While the rise may seem small at just a 1.2 percentage points, the impact this will have on businesses is catastrophic. Research has indicated, in total, the National Insurance tax hike will cost more than £1.4 billion annually. By the end of this parliament, therefore, almost £7 billion will have disappeared from the UK economy.
Businesses are now being forced to compete in an economy which is blatantly anti-business, with 63 per cent of firms concerned about tax increases. Coupled with a 0.1 per cent reduction in payrolled employment, it is clear that businesses are responding to the chancellor’s policies negatively. Yet, the government seems reluctant to take off their rose-tinted glasses and face up to their failure.
Starmer has said for months he is going to put working people first; that his budget will see the poorest in Britain fare better than they have done previously. But, when Reeves stood at the despatch box in October last year, it was the worst off who were thrown under the bus. A national insurance hike which, on the surface, only affects employers but in reality will leave less money in the pockets of working people.
The prime minister has two choices. He could continue to tax people up and down the country, which will only disincentive investment and stifle economic growth. Or he can take the other path.
He can face up to the fact that his chancellor has failed and reverse her indefensible tax hikes.