Jenrick vows to partly undo employer NICs rise for Britons

Key facts

• Reform UK proposes reversing the £25bn employer NICs tax rise introduced by Rachel Reeves.
• The tax cut would be conditional on hiring British workers.
• A new levy on hiring foreign workers would fund the reversal.
• The policy aims to prioritize British workers over migrant workers.
• Jenrick stated the party would not provide a full cost assessment for the policy.

Reform UK's Robert Jenrick has announced that the party would reverse Rachel Reeves' £25bn increase in employers' National Insurance Contributions, but with a condition: the cut would only apply when businesses hire British workers. Jenrick stated that the policy would prioritize "British workers first, migrant workers second."

The party's Treasury spokesman explained that a new, tapered levy would be applied to employers hiring migrant workers, while Reeves' tax hike would be reversed. This NICs cut for British workers would be funded by the new tax on foreign workers and by reducing welfare spending, as fewer Britons would claim benefits. Jenrick asserted that the "experiment of letting in millions of low-wage migrants — as millions of Brits languish on benefits — has failed catastrophically."

Under Reeves' first Budget, the salary threshold for employer NICs was lowered to £5,000, and the tax rate was increased to 15% from 13.8%, collectively raising £25bn. Reform's proposal would reverse this rate increase. The new tax on foreign workers would be graduated based on the number of people employed, with the same 15% NICs rate still applying to employers hiring foreign nationals.

Jenrick told journalists that Reform would not provide a full cost assessment for the policy, citing the up to three years until the next General Election. This announcement follows other economic policy proposals from Reform UK, including raising the VAT registration threshold from £90,000 to £150,000 to aid small businesses. The party has also proposed stricter immigration policies, such as scrapping indefinite leave to remain for foreign nationals and not renewing certain migrant worker visas.