Profit
The Best Place in the World to Employ People
No employer NI. No business rates. 20% corporation tax. The cost of hiring becomes the lowest in the developed world.
£4,500
saved per £30,000 employee, per year
The measure
The best economy in the world to employ or be employed in thanks to a Corporation Tax cut and the abolition of National Insurance and business rates.
Specific structural changes that together remove the financial friction from the act of employing people.
Expected impact
- More people get jobs as hiring becomes significantly cheaper
- Wages rise as employers compete for talent and can fund it
- Investment grows more as costs fall and confidence increases
- The UK outcompetes Germany, France and most of the developed world on employment costs
Cost and revenue
This is a composite view rather than a standalone fiscal measure. The employment cost advantage comes from three reforms working in combination:
| Measure | Employer saving per £30k employee/year |
|---|---|
| Employer NI abolished (was 13.8% on wages) | £4,140 |
| Business rates abolished (replaced by lower land value tax for most) | Variable |
| Corporation tax cut to 20% (from 25%) | Improved margin |
| Total employer cost for a £30,000 employee | £30,000 (from £34,140) |
The fiscal cost of each of these changes is covered in their individual measure pages. Combined, and offset by the Wealth Tax, LVT, and Carbon Tax, the reform as a whole is revenue-neutral with a £34bn surplus.
£4,500
saved per £30k employee with employer NI abolished
38%
of businesses plan to hire more (CBI survey)
42%
plan to raise wages
800k–1.1m
total new jobs projected