Employers National Insurance Rise - The "tax On Jobs" Keetch Tells Local Chamber Of Commerce

12.00.00am BST (GMT +0100) Mon 22nd Apr 2002

Hereford's Liberal Democrat MP, Paul Keetch, has told local employers that the Government's proposed hike in National Insurance to fund additional health spending is a "Tax on Jobs". Speaking at a lunch last Friday hosted by the Leadership Trust to the local Chamber of Commerce and business people from Ross, Mr Keetch said that although he wanted additional investment in the NHS, a rise in Income Tax would have been preferable.

"We have broadly welcomed the tax rises for the NHS, since they reflect our own position in our Alternative Budget", said Mr Keetch.

"Although the 1% increase in NIC's on all earnings, including employees NIC's, is similar to our 1p on income tax, the 1% rise on employers NIC's is a tax on jobs, and at a time of considerable job losses and low investment in all internationally exposed sectors. "

"It is also ironic that the one organisation with the largest number of

employees is the NHS. They will have to find approximately £300 million extra in National Insurance payments.

"In our Alternative Budget, the around £4 billion needed would be brought in instead by the 50% rate on earnings over £100,000. Our policy addresses the two speed economy by reining in consumer spending, not hitting industry."

"Although I will vote tomorrow in favour of the tax rise, we must keep the pressure up on the Government for more NHS investment along with reforms to see better delivery"."

"Mr Keetch, who this week presents a petition for more beds for Hereford Hospital was also deeply critical of the Conservative position."

"There is something fundamentally dishonest about what the Tories are saying", he said."

"They cannot, on the one hand, say they want better services locally, including more beds at Hereford Hospital, but refuse to see tax rises to fund them. The public know you can't get something for nothing"."