Local MP Alan Mak has vowed to stand by 514 businesses in the Havant Constituency that are being hit by Labour's Jobs Tax.
The National Insurance Jobs Tax, which came into force on April 6, will increase the rate of employers' National Insurance Contributions by 1.2 percentage points and reduce the threshold, so businesses start paying the tax sooner.
Based on average weekly earnings, businesses that employ six people or more will pay more National Insurance following the increase.
This amounts to a £25 billion tax raid on businesses nationally, affecting 514 in the Havant Constituency and 76,225 in the South East.
The Conservatives have campaigned tirelessly against the imposition of this tax and attempted to work with the government to make smaller businesses exempt – but Labour Members of Parliament refused to back down from their tax raid.
The Government’s independent forecaster, the Office for Budget Responsibility (OBR), confirms this Jobs Tax will hit working people through lower wages.
Using their figures, it can be calculated that families will be £3,536 worse off over the life of this Parliament because the Jobs Tax will result in lower wages as it squeezes businesses’ profits.
The OBR also confirm the Jobs Tax increases the cost of employing someone by £800 and an average business will see their tax liability increase by £26,000.
This is on top of the £5bn a year cost of imposing Labour’s Employment Rights Bill.
The National Insurance Jobs Tax hits businesses at a time of great uncertainty in the face of tariffs and other bill rises, such as energy bills and business rates, which is why the Conservatives campaigned against it.
Mr Mak said: "Labour’s National Insurance Jobs Tax is more than just a broken promise, it is a sledgehammer to jobs and wages in the Havant Constituency.
"Only the Conservatives will stand by the 514 businesses in the Havant Constituency who will face the brunt of this tax.
"Labour have no business experience so they do not understand it is businesses – not the government – who create jobs and wealth across the country. This tax does the opposite."
