Chancellor Rachel Reeves has defended plans to increase employer taxes in last week’s Budget, while saying she was “not immune” to criticism.
However, she said funding must be raised to put public finances “on a solid footing”.
The decision to increase companies’ national insurance contributions has been criticized by many businesses, including GPs, who believe it could impact on services for patients.
New Conservative leader Kemi Badenock criticized the move, telling the BBC it would not lead to economic growth and would “make us all poorer”.
From April next year, employers will have to pay 15% NI on wages over £5,000, instead of the current 13.8% on wages over £9,100.
The Association of General Practice Management, which represents GP practice managers, estimates the price rise will add around £20,000 to the average surgery’s annual tax bill.
Appearing on the Laura Kuenssberg Show on Sunday, Reeves was asked if there was a chance she could reconsider her employer’s National Insurance rise.
“I’m not immune to their criticism,” she said, “but we have to raise money to put our public finances on a solid footing”.
Reeves told the program plans to increase employers’ NI were not on the party’s agenda ahead of the general election.
Asked whether she was wrong to say during the election that there would be no additional tax if Labor won, she replied: “I was wrong about the mess that the previous government left us”, citing the £22bn of black tax dollars. Labor says this is a loophole left to them by the Conservatives.
Earlier, Reeves said in an interview with Sky News that when she said during the election that taxes did not need to be raised, she had said “I was wrong on June 11, I didn’t know everything”.
In an interview with Laura Kuenssberg, Badenock said Reeves’ plan was “inconsistent.”
She did not reveal whether she would reverse the increase in employers’ NI, but did say she would reverse the rise in VAT for private schools, calling it an “aspirations tax that won’t raise any money”.
