The Reform Party has ignited a heated debate over immigration and job prospects for British workers, unveiling a proposal to tax companies on hiring foreign staff in a bid to reduce National Insurance (NI) contributions. This move, they claim, would enable them to reverse the NI rise imposed last year, providing a welcome relief to thousands of low- and middle-income earners.
Under the proposed levy, employers who hire foreign workers would be required to pay a tax based on wages, with companies employing lower-paid staff facing higher charges. Treasury officials indicate that full-time minimum-wage earners could incur an annual £3,750 fee, while those earning upwards of £50,000 might expect to pay no more than £1,500.
The policy's impact would likely be most pronounced in sectors such as retail, hospitality, and manufacturing, where foreign workers are often employed. Reform UK argues that the measure would compel companies to prioritize British job seekers over overseas recruits, thereby addressing unemployment among domestic workers.
Critics, however, have accused the party of announcing uncosted promises aimed at garnering votes in the forthcoming Makerfield by-election. Conservative shadow chancellor Sir Mel Stride dismissed the policy as a collection of 'gimmicks and headlines' devoid of any concrete plan for government implementation.