Esther McVey MP has hit out at the Chancellor for causing increasing numbers of people to be out of work – as employment levels slump to a 14-year low.
Ms McVey said decisions taken by Rachel Reeves since Labour took office were to blame and levels would continue to soar, given government’s anti-business agenda.
Speaking in Parliament Ms McVey said: “The biggest issue for those on low income is losing their jobs. Does the chancellor believe there is any link at all between her increase in employers national insurance contributions, her job tax and employment levels slumping to a 14 year low?”
New statistics show the UK’s labour market has dropped to its weakest point since 2011 with many companies across key sectors not hiring.
Last year Ms Reeves increased employer National Insurance contributions and increased the minimum wage, making it significantly more expensive to hire each staff member. And last month in her second Budget, she again increased the minimum wage adding further burden to already struggling businesses.
Ms McVey added: “The Chancellor seems to be oblivious to the catastrophic impact her record breaking tax rising budgets have had on employment - particularly the increase in employer NIC.”