The 6th of April is less than four weeks away, when the Labour Government’s National Insurance rise for employers will start. HMRC estimate that these measures will impact around 1.2 million employers and the independent Office for Budget Responsibility say this will result in an average annual tax increase in excess of £800 per employee. The OBR also state that employers will pass on 60% of the higher costs to workers and consumers via lower wages and higher prices.
Labour’s tax on jobs has already had a negative impact on business confidence and the economy and will likely lead to higher unemployment. But it’s not just businesses and working people that are going to suffer, we all will. I’m particularly concerned about the impact on local authorities and charities.
A fortnight ago, the large Labour majority at Crawley Borough Council forced through an annual budget that made drastic cuts to services and inflation-busting rises in fees and charges. The Labour Government’s NI rise will cost the council over half a million pounds each and every year. In seeing the damage being done to local authorities and to charities, I had tabled a motion for this meeting which read as follows:
“The rise in Employer National Insurance Contributions due to take effect in April 2025 is set to cost Crawley Borough Council £522,000 for the 2025/26 financial year. It is also estimated by the National Council for Voluntary Organisations that this rise will cost the UK charity sector up to £1.4 billion in annual running costs. Locally, Crawley Open House have stated it will cause their annual costs to rise by £35,000.”
“With council services impacted and charities adversely affected, Crawley Borough Council calls upon the UK Government to urgently review their planned National Insurance rise, in order to either exempt local authorities and charities, or to better compensate them.”
While every Conservative Councillor voted to support my motion, every Labour Councillor voted against and voted my motion down. They put stopping any embarrassment for their own Labour Government ahead of trying to maintain good council services and helping charities.
Councillor Duncan Crow, Leader of Crawley Borough Council Conservative Group
12th March 2025
