It’s a Jobs Killer, Not a Money Maker!

The Chancellor might think she’s got a clever way to bring in an extra £25 billion by hiking employer National Insurance from 13.8% to 15%, but let me tell you—she’s made a monumental mistake.

Businesses won’t just roll over and take the hit. They’ll do what businesses always do when the government makes hiring more expensive: they’ll stop hiring, cut jobs, and push wages down. And the result? This tax increase won’t boost revenue—it’ll do the exact opposite.

Businesses Will Cut Jobs to Survive

I’m already hearing it from business owners across the country. Some are putting hiring plans on ice, others are actively looking at job cuts, and a few are already letting people go. When you make employment more expensive, you don’t get more money—you get fewer people in work. That means more people claiming unemployment benefits, which will cost the government even more than the tax hike was supposed to bring in.

It’s basic economics—if fewer people are in work, there’s less National Insurance coming in. The government’s dream of an extra £25 billion? Forget it. That money will be wiped out by the rising benefits bill and falling tax receipts. I wouldn’t be surprised if overall revenues drop by 25% instead of going up!

The Return of the Black Economy

And let’s not forget the return of the black economy. This hike will push businesses back to paying cash-in-hand to avoid the tax increase, bringing back the dodgy practices the government has spent years trying to stamp out. It’s a lose-lose situation—less tax revenue for the Treasury and a rise in unregulated, off-the-books employment that helps nobody in the long run.

At WeFix London, we’re still hiring and growing, but this policy is a massive kick in the teeth for businesses already struggling with rising costs. If Rachel Reeves thinks this is a smart way to balance the books, she’s in for a rude awakening.

Less Tax Revenue, Not More

You don’t tax your way to prosperity—you create the conditions for businesses to thrive, invest, and hire more people.

Instead of slapping yet another tax on job creation, the government should be doing everything possible to make it easier for businesses to grow, employ more people, and contribute to the economy. But hey, what do I know? I’ve only been in business for over 45 years.