TUC – Employer NI rise needed to fund public services

Commenting on the government’s plans to raise employer national insurance contributions to fund the repair of public services, TUC General Secretary Paul Nowak said:

“There is no link between rates of employer national insurance and wages. At a time when senior bosses are earning 100 times average pay, and dividends continue to outstrip wages, no union would accept that their members should pick up the bill for a modest rise in employer NI contributions.

“Just today the Low Pay Commission, which includes representatives from business, has published evidence showing that most employers absorb higher costs without impacts on pay growth.

“This is not a zero-sum game. Businesses need strong public services. They will benefit from the government investing in infrastructure and repairing our health services and schools, which will lower costs and raise productivity.”

A poll of more than 500 business leaders published by the TUC earlier this week showed that more than half (59%) say they are losing staff time due to the poor state of public services.

The poll also showed that:

• 94% say public services are important to success of the UK economy
• 81% say public services are important to success of their business
• 89% say improvements to public services should be a high priority for the government