During question time in the House of Commons, in his role as Shadow Treasury Minister, James Wild MP challenged the Treasury over the economic consequences of tax measures introduced by the government. He cited the analysis of the Office of Budget Responsibility that the Chancellor's policies will lead to lower wages, higher prices, and fewer jobs.
James raised concerns about the £25 billion annual increase in employer National Insurance contributions (NICs) and the near doubling of business rates for retail and hospitality sectors. The NICs rise, effective from April 6th, will cost employers an extra £960 per median-earning employee, who are already facing inflationary pressures and rising energy costs.
Moreover, the government’s decision to reduce business rates relief from 75% to 40% has been met with heavy criticism, with industry analysts warning that many businesses could face average bill increases of over £5,000, risking closures and job losses.
James Wild MP said:
Businesses have just been hit by the Chancellor’s £25 billion jobs tax, which will cost working families £3,500; also, business rates are nearly doubling for hospitality and retail businesses. How does imposing taxes that the Office for Budget Responsibility says will result in lower wages, higher prices and fewer jobs help growth and those on the lowest incomes, and will the Chancellor keep her promise not to come back with more taxes in this Parliament?
In response, the Exchequer Secretary to the Treasury, James Murray MP, said:
The Shadow Minister talks about business rates support. I remind him that if we had carried on with the plans inherited from the Conservative party, business rates relief would have ended entirely this month. It is only thanks to a decision of this Government that rates relief is continuing for this year, ahead of permanent reforms that will permanently lower tax rates for retail, hospitality and leisure premises on the high street from April 2026. That is thanks to a decision this Government made.
