Wes Streeting, a Labour leadership hopeful, has called for a reduction in employers' national insurance contributions and for the government to approve drilling in the North Sea. The former health secretary told the Sunday Times that a targeted cut could incentivise hiring, particularly of young people.
Streeting's comments come amid high youth unemployment in Britain. A report by former cabinet minister Alan Milburn highlighted a lack of hospitality jobs, with vacancies halving over four years. The UK has the third-highest rate of 16- to 24-year-olds not in education, employment, or training among wealthy European nations.
Employers' national insurance was raised from 13.8% to 15% in 2024, with the threshold lowered from £9,100 to £5,000. The policy aimed to raise £25bn annually but faced criticism for discouraging hiring of lower-paid staff. Work and Pensions Secretary Pat McFadden defended the increase, noting that businesses already avoid NI for under-21s, and argued it helped reduce NHS waiting lists.
On North Sea drilling, Streeting backed consent for the Rosebank and Jackdaw fields, saying it would boost tax receipts. Energy Secretary Ed Miliband is due to decide on the projects, which were granted exploration licences under the previous government. Streeting predicted Miliband would approve them, despite Labour's manifesto pledge not to issue new fossil fuel licences.
