Sajid Javid – who was the UK’s chancellor of the exchequer until February – has called for a tax cut to make it cheaper for businesses to employ staff.
In a report with the Centre for Policy Studies think tank, he said employers’ national insurance – a payroll tax – should get a “significant, temporary” cut.
Employers and employees pay national insurance. The employers’ rate is 13.8% on wages above £732 a month. Mr Javid told Today on Radio Four that having a temporary stimulus would “turbo-charge” economic recovery.
He said that infrastructure projects were a big part of what was required to stimulate investment, along with keeping taxes low.
Mr Javid has also warned against a return to “austerity” as the UK deals with an increased public debt of almost £2 trillion.
Source: BBC
