Employment Allowance figures show 1,300 Worcester businesses benefit from job tax cut

 

Robin Walker, Worcester’s Conservative Parliamentary Candidate, has welcomed new figures released today

showing that 1,300 businesses in Worcester have benefited from the Government’s Employment Allowance since

its introduction a year ago, making it easier for small businesses to hire staff and create new jobs.

 

The Employment Allowance provides up to £2,000 off the National Insurance bill for every employer and is open

to businesses, charities and community amateur sports clubs. The allowance means a business could now hire

someone on £22,400 a year, or three people working full-time on the minimum wage, and not have to pay any

employer’s National Insurance Contributions. This is making it easier for local businesses to grow and create more

jobs in Worcester. Since it was launched in April 2014, over 1.1 million employers across the country have

benefitted from the Employment Allowance.

 

Earlier this week Robin met local business people and entrepreneurs with Business Minister Matt Hancock and

last week he met local recruitment firm, e-response Recruitment. Both sets of business confirmed that the jobs

market is strengthening in Worcester with wages rising and more jobs becoming available.

 

Robin, who during the last Parliament served on the Business, Innovation and Skills Select Committee, strongly

supported the introduction of the Employment Allowance and has campaigned to increase the number of

apprenticeships and to bring inward investment to Worcester as well as to reform business rates to create

incentives for businesses to grow and take people on. During his time as MP he has always sought to be a strong

voice for Worcester’s businesses and local unemployment has been more than halved.

 

George Osborne welcomed the new national figures for employment allowance, saying:

“It is great news that 1.1 million small businesses are now claiming our Employment Allowance. This confirms that

our Employment Allowance has been a huge success – and a real boost to job-creating small businesses. Backing

small business is at the heart of our long-term economic plan, a plan that is delivering jobs and growth across the

country. Britain has now created over 2 million jobs in the past five years, and our £2,000 cashback on jobs has

made it easier for small businesses to take on new staff. Our plan is working, but the job is far from over.

“At this election we face a clear choice. People can either vote for political instability and economic chaos, with a

weak Ed Miliband propped up by the Scottish Nationalists, which will mean tax rises and job losses; or people can

choose David Cameron and the Conservatives, and stick with a plan that is already delivering jobs, growth and a

more secure future”.

 

Robin Walker commented:

“Our long-term economic plan is backing businesses to create jobs so more hardworking people have the security

of a regular pay-packet. Since we introduced the Employment Allowance a year ago, 1,300 businesses in

Worcester, 10,400 across the county, and 89,000 in the West Midlands, have had their jobs tax cut, making it

easier for them to hire staff and create new jobs. Unemployment in Worcester has fallen by more than 1,300 in

the last five years and I want to see that trend continue.”

 

“Conservatives recognise that we need successful businesses to create a strong jobs market and the support we

have given to business has helped new start-up’s, growing SMEs and larger employers alike. I want to see that

support continue and ever higher levels of employment in Worcester which in turn can help to drive up local

wages.”

 

“These new figures show that our plan is working, but all that is at risk in just seven days’ time if we have Ed

Miliband as Prime Minister, propped up by the SNP. Their plan for more spending, more borrowing and more

taxes will put vital investment here in Worcester at risk, and hardworking people will pay the price. That’s why it’s

so vital that people vote Conservative next Thursday – so we can carry on supporting our local economy and

delivering economic security and peace of mind for people in Worcester.”

 

 

Notes to Editors

About Robin Walker:

Robin Walker was elected Member of Parliament for Worcester in May 2010. He is currently seeking re-election

in the constituency as the Conservative Parliamentary Candidate. During the last Parliament, Robin served on the

Business, Innovation and Skills Select Committee and worked hard to raise the cause of Apprenticeships, the

concerns of businesses and

For more information please contact Robin Walker on: 07946 546933 or at: robin@walker4worcester.com

 

About Employment Allowance:

 1.1 million businesses have benefited from the Government’s Employment Allowance, which takes up to

£2,000 off employer’s National Insurance bills and supports jobs. The allowance, introduced on 6 April 2014,

cuts the jobs tax for every business and charity by up to £2,000. Businesses will be able to hire one extra

person on £22,400 pa, or three people working full time on the minimum wage, without paying any National

Insurance (HM Treasury, Budget 2013, 20 March 2013, link; HM Treasury press release, 6 March 2014, link;

HMRC, Employment Allowance take-up: 2014-15 full year estimates, 30 April 2015, link).

 Employment is up by 2 million since the election. In the three months to April 2010, there were 29.048

million people in employment. In the three months to February 2015 there were 31.049 million people in

work. That’s 2 million more people with the security of bringing home a regular pay packet (ONS, MGRZ, 17

April 2015, link).

 Businesses have created over 2.3 million new jobs. The private sector has created 5 jobs for every 1 lost in

the public sector since 2010 (ONS, Labour Market Statistics, 17 April 2015, link).

Regional statistics:

 Estimates for number of employers benefitting from lower Employer NICs already by region (HMRC,

Employment Allowance take-up: 2014-15 full year estimates, 30 April 2015, link).

Number of

employers

Region and Nations

North East 33,000

North West 118,000

Yorkshire and the Humber 84,000

East Midlands 74,000

West Midlands 89,000

East of England 109,000

London 188,000

South East 165,000

South West 99,000

Northern Ireland 27,000

Scotland 85,000

Wales 43,000

Total: 1,117,000

Constituency statistics:

 Estimates for number of employers benefitting from lower Employer NICs already by constituency (ibid).

County of Worcestershire (by constituency)

Bromsgrove 2,000

Mid Worcestershire 1,900

Redditch 1,500

West Worcestershire 2,100

Worcester 1,300

Wyre Forest 1,600

Total 10,400