Kemi Badenoch refuses to say if Tories would reverse employers' national insurance rise

Kemi Badenoch has refused to say if the Conservatives would reverse Labour's increase in employers' national insurance.

The Tory leader told business leaders at the Confederation of British Industry (CBI) conference she would change any Labour budget policies that are not working and not raising any money.

When asked by Sky News if she would reverse the increase in employers' national insurance, due to rise to 15% from April 2025, Ms Badenoch hinted she would likely change it but said she would not comment on "every bit of micropolicy".

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She said it was "quite clear" the last government, led by Rishi Sunak, did not think national insurance paid by employers "should be this high" as they did not raise it at the last Tory budget.

"The fact that so many organisations, especially those that have people who are on the lowest wages, are saying that this is becoming unaffordable, means that we should look again," she said.

"We believe that employers' national insurance, while necessary to help us fund public services, is a tax on jobs. I know this from personal experience.

"When employers have to pay it, it means that they have less money for higher wages, they may not create new jobs."

Ms Badenoch also told the conference: "There is no point in me just complaining about Labour when it was obvious that we Conservatives lost the confidence of business."

She said the Conservatives "must be the party of business, not just big business, not just corporates, but small business too".

"The new government believes that invisible businesses can absorb these costs, but it is everyday people who bear the brunt, either in higher prices or lower wages, sometimes both," she added.

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Sir Keir Starmer last week defended the decision to raise employers' national insurance after more than 70 businesses, including Tesco, Asda and Sainsbury's told Rachel Reeves in an open letter the budget announcements mean price hikes are a "certainty".

He said: "The reason we got into such a mess over the last 14 years is because the last government refused to take a single difficult decision."

Governor of the Bank of England Andrew Bailey said retailers were "right" to warn of potential job cuts.

"I think there is a risk here that the reduction in employment could be more," he said.

A Labour spokesman said Ms Badenoch's refusal to say if she would reverse the national insurance rise shows the Conservatives "seem to finally accept that the damage they did to the economy made tax rises necessary".

"While the Tories try and work out what they think, Labour is getting on with fixing the foundations and rebuilding the country," he added.