The Conservative party is set to announce its proposals to block some of next year’s planned National Insurance rises, it has been reported.
According to the BBC, the party is also expected to detail its proposals of how it will pay back the lost billions this will result in.
It is believed shadow chancellor George Osborne will scrap the proposed one per cent increase in National Insurance payments levied on workers earning more than Ã‚Â£20,000.
Indeed, the chancellor has called the planned increase a tax on jobs and stated that Conservative proposals will ensure that seven out of ten employees are better off.
However, chief secretary to the Treasury Liam Byrne responded, saying: “Rather than making more promises he can’t afford, the test for George Osborne is to tell people how he’ll pay for the ones he’s got.”
The Labour government had proposed the increases to take effect in April next year, as the economy begins its recovery from the recession.
Commenting on the news, the BBC’s political editor Nick Robinson said the Conservative plans could create an “intriguing political role reversal”.
The CBI had already called for the proposed increase to be reversed.
Richard Lambert, CBI Director-General, said:Ã‚Â “The Conservatives’ plan to reduce next year’s increase in employers’ NICs is welcome, and will help large and small businesses alike.
“NICs are a tax on jobs and increasing them is a bad idea when we want to promote job creation. We continue to call for the proposed increase to be cancelled entirely, as and when action on the public finances makes this possible.”
Posted by Colette Paxton