[p?c1=2&c2=6035250&cv=2.0&cj=1&cs_ucfr=0&comscorekw=Tax+and+spending%2C Universal+credit%2CNational+insurance%2CTax%2CPolitics%2CLabour%2CKeir+ Starmer%2CMoney%2CSociety%2CUK+news%2CBusiness%2CConservatives] Skip to main contentSkip to navigation Advertisement International edition [ ] * International edition * UK edition * US edition * Australian edition The Guardian - Back to home Search jobs Sign inSearch [ ] * News * Opinion * Sport * Culture * Lifestyle ShowMoreShow More * [ ] News + World news + UK news + Coronavirus + Climate crisis + Environment + Science + Global development + Football + Tech + Business + Obituaries * [ ] Opinion + The Guardian view + Columnists + Cartoons + Opinion videos + Letters * [ ] Sport + Football + Cricket + Rugby union + Tennis + Cycling + F1 + Golf + US sports * [ ] Culture + Books + Music + TV & radio + Art & design + Film + Games + Classical + Stage * [ ] Lifestyle + Fashion + Food + Recipes + Love & sex + Health & fitness + Home & garden + Women + Men + Family + Travel + Money * Make a contribution * Subscribe * Search jobs * Holidays * Digital Archive * Guardian Puzzles app * Guardian content licensing site * The Guardian app * Video * Podcasts * Pictures * Newsletters * Today's paper * Inside the Guardian * The Observer * Guardian Weekly * Crosswords * Search jobs * Holidays * Digital Archive * Guardian Puzzles app * Guardian content licensing site * UK * UK politics * Education * Media * Society * Law * Scotland * Wales * Northern Ireland Tax and spending This article is more than 4 months old Higher taxes could leave low-paid frontline workers £1,000 worse off This article is more than 4 months old Labour and CBI express concerns the government’s tax policies are bad for business and workers Labour leader Keir Starmer speaking in the Commons [ ] Labour leader Keir Starmer accuses the Conservatives of ‘putting the very wealthiest ahead of working people who have to pick up the bill’. Photograph: House of Commons/PA Labour leader Keir Starmer accuses the Conservatives of ‘putting the very wealthiest ahead of working people who have to pick up the bill’. Photograph: House of Commons/PA Zoe Wood @zoewoodguardian Mon 13 Sep 2021 00.01 BST [ ] Last modified on Mon 13 Sep 2021 05.13 BST * * * Higher national insurance payments will leave low-paid frontline workers potentially more than £1,000 a year worse off, while also depriving firms of the cash needed to invest, according to the latest analyses. The combination of higher national insurance contributions (NICs), Universal Credit cuts and a freeze on the income tax personal allowance, would take £1,040 a year away from the average supermarket worker, according to Labour. The retail sector is the UK’s biggest private sector employer. For hospitality workers, nurses and social care workers the hit is bigger at about £1,100. Think the Tories are less nasty now? See what they do with universal credit | John Harris Read more Keir Starmer said the figures showed the impact of the government’s policies on people’s everyday lives and suggested the Conservatives were “putting the very wealthiest ahead of working people who have to pick up the bill”. The Labour leader was scathing about last week’s announcement of a 1.25 percentage point increase in NICs, saying it would not “fix the crisis in social care, will not clear the backlog in our NHS and will not protect homeowners from having to sell their homes to pay for care”. In a speech on Monday at the Alliance Manchester Business School Tony Danker, the director general of business lobby group the CBI, will warn that higher business taxes and lower investment are not a plan for economic growth. “After the pandemic, we in business believe that we should pay our fair share to tackle the debts of Covid,” Danker will say. “That is why many business leaders accepted the jaw-dropping six-point corporate tax increase announced in March.” IFRAME: business-today Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk But he will say there is now a real risk the government will keep turning to business taxes to “carry the load” and the choice of national insurance to fund social care is the latest example of this. “I am deeply worried the government thinks that taxing business – perhaps more politically palatable – is without consequence to growth,” he will say. “It’s not. Raising business taxes too far has always been self-defeating as it stymies further investment.” A government spokesperson said: “This government has consistently backed business – including through our £400bn plan for jobs – and we’ve shown we are committed to supporting business investment, extending the annual investment allowance increase for another year and introducing the super-deduction – the biggest two-year business tax cut in modern British history.” Topics * Tax and spending * Universal credit * National insurance * Tax * Labour * Keir Starmer * Conservatives * news * * * * * * Reuse this content * UK * UK politics * Education * Media * Society * Law * Scotland * Wales * Northern Ireland * News * Opinion * Sport * Culture * Lifestyle IFRAME: https://www.theguardian.com/email/form/footer/today-uk * Contact us * Complaints & corrections * SecureDrop * Work for us * Privacy policy * Cookie policy * Terms & conditions * Help * All topics * All writers * Digital newspaper archive * Facebook * YouTube * Instagram * LinkedIn * Twitter * Newsletters * Advertise with us * Search UK jobs Back to top © 2022 Guardian News & Media Limited or its affiliated companies. 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