Quote Him="Him"Labour raised employers NI from 10% to 12.8% over 13 years and during growth. The coalition have raised it to 13.8% during a recessionary period.
It also means very little, if employers NI were abolished then that tax revenue would have to be found elsewhere. The fairest way of doing that is through income tax, so employers would have to pay their employees more to account for the higher income tax. Whether they pay it to the taxman in employers NI or the employee and its then taken in income tax is irrelevant.'"
Wasn't the 1% rise set out pre-election? It's clearly not irrelevant to the companies concerned, otherwise they'd not do it. It's clearly not irrelevant to the topic under discussion - the growth in part-time employment. So, I'd say it pretty much hit's the nail on the head.
Tesco emply 472,000 people. for simplicity lets assume all work c. 20 hours at c. £7 per hour. Tesco pays no ers NI. If instead it employed 236,000 at c. 40 hours per week, they'd be paying over 236 Million in NI each year. That's one heck of alot of cash. Actually the saving will be less as they get corporation tax relief on the NI, but you'll still be talking best part of £200 M per year. Now multiply those figures by all the other shop workers, cleaners, caterers, etc and who see what is driving part-time working for millions of people. it's government policy. Government benefit as they point to how many jobs have been created or there are in the economy.
