Chancellor defends national insurance increase for businesses

Reeves was keynote speaker at The Yorkshire Post's Great Northern Conference 2024 in Hull yesterday (3 December). Sky Business News reports she told delegates: "I'm not going to pretend that it's going to be easy for businesses, or indeed for charities or local authorities, to absorb, especially, the national insurance increase.”

She said the Labour Party “made a commitment during the general election” that it “wouldn't increase taxes on working people”.

“[Because] over the last few years it has been working people that have had to bear the brunt of tax increases,” she said.

Reeves is facing a strong backlash to the planned changes. In November, retailers warned the rise in national insurance for employers makes “job losses inevitable, and higher prices a certainty”.

Almost 80 retail bosses signed a letter by the British Retail Consortium (BRC) criticising the decision, they include AllSaints CEO Peter Wood, H&M CEO and country manager Henrik Nordvall, JD Sports Group CEO Regis Schultz and Marks & Spencer CEO Stuart Machin.

The letter states: “We are writing to share our significant concerns about the impact of the Budget on the retail industry and the economic consequences for inflation, employment and investment.”

They say the changes could mean a rise of up to £7bn a year for the retail sector.

During The Yorkshire Post's Great Northern Conference, Reeves, who is the MP for Leeds West and Pudsey, also discussed Labour’s plans for increased investment in the north of England, which will include “better connectivity and greater opportunity in places like Yorkshire and the Humber”, she said.