Background on National Insurance: National Insurance contributions are used to fund various social services, including the National Health Service (NHS) and state pensions. An increase in employer contributions has been suggested as a way to raise funds amidst rising costs.

Starmer’s Response: Keir Starmer argued that the need for increased funding for essential services should take precedence over manifesto commitments, especially in the context of the ongoing economic challenges faced by the UK. He emphasized that investing in public services is crucial for long-term growth and stability.

Conservative Position: The Conservative Party has warned that raising employers' NI contributions would go against their electoral promises, which included commitments to avoid tax increases. They argue that such a move could harm businesses, particularly small enterprises, and potentially lead to job losses.

Economic Context: The discussion comes amid a backdrop of inflation, rising living costs, and the financial implications of the COVID-19 pandemic. Both parties are navigating the challenging economic landscape while trying to address public concerns about funding and support for essential services.

Implications for Employers: A rise in National Insurance contributions could result in increased costs for employers, affecting hiring decisions and wages. This has raised concerns among business leaders who fear the impact on the labor market and economic growth.