Local MP slams jobs tax as Harrogate workers face £3,000 hit

Harrogate workers are set to lose nearly £3,000 from their pay by the end of the decade – with an average hit of almost £500 in the next year alone – according to new analysis by the Liberal Democrats. 

The warning comes after the Labour government’s hike to employers’ National Insurance contributions came into effect this month. The Office for Budget Responsibility estimates that 76% of the cost will be passed on to workers through lower wages, hitting household incomes across the country. 

Since the announcement last autumn, local MP Tom Gordon has been inundated with concerns from charities, care providers, and businesses across Harrogate and Knaresborough. Many say they were already struggling to stay afloat – and this tax rise could push them over the edge. 

In Parliament, Tom shared the stories of charities in his constituency facing severe financial strain. One expects to be hit with an additional £90,000 in annual costs, while another estimates £160,000 increase due to higher NICs. Tom explained how ‘the rug had been pulled from beneath them.’ 

Given these figures, it’s no surprise to Tom that employees will ultimately be left footing the bill for this so-called ‘jobs tax’. With many charities and care providers already on the brink of collapse, they’re being left with little choice. Tom and his Liberal Democrat colleagues are deeply concerned about the impact this will have – particularly at a time when households budgets are already under serious pressure. For many workers, the prospect of losing thousands of pounds over the next few years is a source of real anxiety and stress. 

Tom and his Liberal Democrat colleagues are calling on the Chancellor to scrap the jobs tax and overhaul the broken business rates system; to protect workers, help drive local growth and save high streets from decline.

Liberal Democrat MP for Harrogate and Knaresborough, Tom Gordon said:

“The Chancellor’s jobs tax is setting already stretched household finances up for another battering,  right in the middle of a cost of living crisis. After years of Conservative economic vandalism, this Labour government is now risking a wave of boarded-up shops across our much-loved high streets, leaving local businesses on the brink. 

“The Government cannot go on pretending that their jobs tax won’t hurt people’s pockets. It is workers, town centres, and small businesses who will bear the brunt. 

“The Chancellor must immediately scrap her jobs tax and overhaul the broken business rates system. Only then can we unlock Harrogate and Knaresborough’s full growth potential and protect local jobs and finances.”

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