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You are here: Home / Whitehall Watch / NIC ‘jobs tax’ versus ‘Efficiency’ jobs cuts – NICs wins

NIC ‘jobs tax’ versus ‘Efficiency’ jobs cuts – NICs wins

Colin Talbot By Colin Talbot Filed Under: Whitehall Watch Posted: April 13, 2010

Which would lose most jobs – Labour’s increasing of National Insurance Contributions, the so-called ‘tax on jobs’, or the Tories extra efficiency savings? According to my calculations, the Tories extra £6bn alone (they actually claim an extra £12bn) will include at least 40,000 job losses, possibly as many as 60,000+ if private sector losses from cuts in IT spending and purchasing are included.

So what about Labour’s NICs increase? Well, according to a very authoritative source it would cost just 23,000 jobs – so roughly a half  to a third of the Tories efficiency savings. The source – Rupert Harrison, the Conservatives’ chief economic adviser, as the FT reports. So as I guessed, the efficiency savings would cost more jobs than the NICs rise, and do considerable damage to public services and organisations into the bargain.

About Colin Talbot

Colin Talbot is a Professor of Government, a former Specialist Advisor to the House of Commons Treasury Select Committee and the Public Administration Select Committee and has appeared as expert witness many times in Parliament, the Scottish Parliament and NI Assembly. He's also advised Governments from the USA to Japan.

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