Following the final Prime Minister’s Question Time of this Parliament, Andrew Turner, the Island’s MP, has expressed his astonishment at the Prime Minister’s suggestion that Conservative plans not to implement a planned rise in National Insurance contributions (NIC) is equivalent to withdrawing £6 billion from the British economy.

Labour’s plan to increase NI contributions has been widely criticised as a ‘tax on jobs’, and has been lambasted by 68 senior business leaders, including several who act as advisors to the Prime Minister. The number of businesses lining up to criticise Labour’s plan is rising by the day, and already the employers of almost a million people oppose it. Conservatives have promised not to implement the increase because it would kill the recovery.

Mr Turner said:
“Labour think that money is only in ‘the British economy’ if it is controlled by Government. They are wrong. There are two elements of NI contributions. Payments made by the employer and payments made by the employee. Leaving more money with employers will safeguard jobs and allow them to employ more people. Leaving more money in the pockets of employees will leave them with more to spend. That money would still be ‘in the economy’ and is a far better way of protecting the recovery than continuing with Government spending that even Labour have identified as wasteful.

“The Chancellor has already admitted that the NIC increase would cost jobs – but says that would be ‘manageable’. Of course more unemployed people will lead to increased benefit payments – but Alastair Darling has refused to publish the detailed assessment behind the figures. If they believe the impact would be manageable they should prove it by publishing the figures.”

Mr Turner added that he would welcome the views of Islanders and local businesses on the issue and a short questionnaire is available on his dedicated survey website www.thewightcounts.org.uk .

END Contact : Andrew Turner’s office 01983 530808

Exchange between David Cameron and Gordon Brown at Prime Minister’s Questions – 7th April 2010

Mr. Cameron: The choice is Labour’s decision to go on wasting money and then put up tax on every job in the country. This is what business leaders said:
“cutting government waste won’t endanger the recovery—but putting up national insurance will.”
Let me ask the Prime Minister again. Does he believe that these business leaders, including members of his own advisory council, were deceived?

The Prime Minister: We cannot cut our way to recovery, and that is why to withdraw £6 billion from the economy now is the wrong thing to do. Let us be clear: the Conservative policies would put jobs at risk immediately, would put businesses at risk immediately, and would put growth at risk immediately.