ACS

23 April 2010

In a debate that covered few of the main issues that concerns local shops, the Leaders did cover some aspects of employment costs, particularly the plan to increase national insurance in April 2011.

David Cameron said: ‘There is a fundamental disagreement between me and the other two parties about what we do this year. I think we badly need to roll up our sleeves and make some savings this year so we can stop the jobs tax, the national insurance tax rise that is coming down the road because I think that when you have got an economy that is trying to recover, the worst thing you can do is put a tax on every single job in our country and that’s why, that’s why over 1,100 business leaders have said don’t do this. They have said very clearly that the threat to our recovery is not cutting waste, the threat is the jobs tax. The others don't agree about that but I badly think we really, really need to stop this tax which could kill our recovery and kill jobs.’

 Gordon Brown responded: ‘What David is saying is even when it’s fragile, he wants for ideological reasons I think, to take £6 billion out of the economy. That puts thousands of jobs – teachers, it puts policemen, it puts thousands of jobs at risk immediately and that’s why they are talking about an emergency budget in June. David, you’re a risk to the economy’.

 One of the questions focused on pensions, which allowed Gordon Brown to outline his position on employer contribution pension schemes which will come into force in 2012: ‘but it is also the case that everyone who works for an employer will now also have an occupational pension and that is another change that we are making that is coming in, in the parliament to come.’

 Local shop owner from the Midlands Sundher Sander said: “The cost of employing staff has increased dramatically over the past few years, there is no doubt that finding ways to make employing people more affordable would benefit local shops. National Insurances increases are a part of that, but for me the main problem is the year on year increases in the national minimum wage that drive up costs not only for the newest and most junior staff members but for all as I struggle to maintain a differential for more experienced staff. I would like to see an honest debate on how we set the national minimum wage in the future and an acceptance that the wage should be a minimum not a way of inflating incomes.

To read more about ACS position on employment see http://www.acs.org.uk/en/lobbying/issues/employment/