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Chancellor concedes there was a valid argument for not increasing job taxes
Newsletter issue – April 2026
The Chancellor, Rachel Reeves, admitted there was a 'valid argument' against her decision to raise employers' National Insurance contributions. She defended the increase as necessary to fund public services, especially the NHS, which received a £29 billion annual uplift.
Critics argue her admission comes too late for businesses and workers already affected. The TaxPayers' Alliance said the tax rise inevitably reduced job opportunities, pointing to rising youth unemployment. Some argue that reversing the employer NI increase would help businesses and improve job prospects for young people.
ONS data shows 957,000 young people (16 - 24) were classed as NEET (not in education, employment, or training) in the last quarter - an increase of 11,000 from the previous period.
Ms Reeves said that the Government was expanding apprenticeships and pointed to her 'youth guarantee' which promises paid work for young people who've been out of education or employment for 18 months.
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