Work and Pensions Secretary Pat McFadden has pushed back against calls from Labour leadership hopeful Wes Streeting for a national insurance cut for businesses and approval of North Sea drilling. Streeting, a former health secretary, argued in the Sunday Times that a targeted reduction in employers' national insurance contributions could incentivise hiring, particularly of young people.
McFadden, speaking on Sky News, defended the government's record, noting that businesses already do not pay employers' national insurance for workers under 21. He cautioned that any tax change comes with costs and consequences, stating, 'If you want to pull one lever in the tax basket, there will be consequences.' He also claimed that increased national insurance rates had contributed to falling NHS waiting lists, which he described as a labour market measure.
Streeting also backed drilling for oil and gas in the North Sea, specifically for the Rosebank and Jackdaw fields, which were granted exploration licences under the previous Conservative government. He suggested Energy Secretary Ed Miliband would likely grant consent, arguing it would lead to higher tax receipts. However, Miliband is yet to decide, weighing the drilling against the UK's climate commitments.
Streeting has openly called for Keir Starmer's resignation and expressed interest in standing for Labour leader. The current frontrunner in any hypothetical contest is Andy Burnham, the mayor of Manchester, who is standing as Labour's candidate in the Makerfield by-election on 18 June.
