Local MP Defends Science Sector against looming NICs hike

Local MP Tom Gordon has raised concerns over the government’s policy of increasing employer National Insurance Contributions (NICs) and the detrimental impact it could have on the UK’s science sector. 

This issue has come to the forefront following AstraZeneca’s recent announcement that it is withdrawing a planned £450 million investment in a UK plant due to disputes over government support. The investment was intended to expand AstraZeneca’s Liverpool site and has been backed by the previous Conservative government. However, since coming to power, the Labour government has failed to match the previous administration’s commitment, leading to the collapse of the deal. 

Tom challenged the government on the true reasons behind the breakdown of the deal. He noted that while ministers claimed the numbers no longer worked for AstraZeneca, they also insisted that employer NIC contributions were not a factor in the loss of the deal. 

Tom questioned how the latter statement could be true, pointing out that businesses across the country – including AstraZeneca – are bracing for significant tax increases in April due to the rise in employer NICs. AstraZeneca will be aware of the impact these tax increases will have on their finances, potentially costing them hundreds of thousands of pounds annually. As Tom made clear, it is unreasonable to suggest that this hasn’t played a role in AstraZeneca’s decision-making and ultimately the collapse of the deal. 

LabCorp, another key player in the science sector, is also expecting to be impacted by the increase in employer NICs, much to Tom’s concern given their UK headquarters are based in his constituency of Harrogate and Knaresborough. LabCorp is not only vital to research and development but also stands as the largest private employer in Yorkshire. 

Commenting, Tom said: 

“The idea that the increase in employer NICs had no impact on this deal falling through is simply nonsense. The government needs to wake up to the damaging effects this policy is having—not just on businesses across the country, but also on the vital science sector.

"The government have rightly identified growth as important, but their actions are doing the opposite. Losing this deal with AstraZeneca is a huge blow to research and development opportunities for the UK.

“As a scientist and a member of the Select Committee, I will continue to stand up for this crucial industry, which not only drives job creation and economic growth but also plays a fundamental role in keeping people healthy.’ 

ENDS