Reform UK Treasury spokesman Robert Jenrick said Monday the party would tax companies for hiring foreign workers in lower-paid jobs and use the revenue to cut employer National Insurance contributions for British staff, arguing the policy would “end the cheap migrant labour racket once and for all.”
Speaking at a news conference in London, Jenrick said Reform would exempt British employees from last year’s hike to employer NI contributions while keeping the higher rate in place for foreign workers. He estimated the NI cut for British staff would cost the Treasury £11.2 billion, but said he was “very confident” this could be paid for by the new levy.
The levy would decrease as wages rise, Jenrick said. For a company hiring a foreign worker full-time at the minimum wage — an annual salary of £24,784 for those over 21 — the levy would be set at £3,750. That figure would fall to £1,500 for workers earning £50,000 a year and £500 for those earning £100,000, he indicated.
Jenrick declined to specify the full proposed rates, saying it would be “irresponsible” to do so with up to three years before the next election. The party plans to release full details following a consultation with businesses.
The policy is likely to hit sectors that rely on foreign workers, including retail, hospitality and manufacturing. It would also significantly affect private companies employing carers, which — unlike public sector employers such as the NHS — have not been shielded from last year’s NI increase. Jenrick suggested such firms should raise salaries to recruit British workers instead, adding that foreign nationals were “doing many doing jobs that the Brits should be doing.”
Reform UK has already pledged to abolish the right of migrants to permanently settle in the UK after five years, forcing them either to apply for British citizenship or reapply for temporary work visas with higher salary requirements. Jenrick acknowledged the proposed levy’s tax base would “rapidly shrink” as a result but argued the diminishing tax take would be compensated by savings in benefits paid to unemployed British nationals who would be offered jobs.
The announcement came ahead of a crucial by-election in Makerfield on Thursday, where Reform UK is hoping to head off a challenge from Restore Britain, the fledgling party founded by former Reform MP Rupert Lowe. On Sunday, party leader Nigel Farage said Reform also wanted to ban foreign nationals from living in social housing. The party last week also pledged a VAT cut for smaller businesses.
Conservative shadow chancellor Sir Mel Stride accused the party of “throwing out a litany of policies in the hope something sticks.” He added: “In their desperation to try to win Makerfield, Reform are running the most reckless and expensive by-election campaign in history. Announcing tens of billions in entirely uncosted promises is not serious. It’s a symptom of a party that deals only in gimmicks and headlines, with no real plan for government.”