Wes Streeting, the former health secretary and potential Labour leadership candidate, has called for a targeted reduction in employers' national insurance contributions and for the government to approve drilling for oil and gas in the North Sea. In an interview with the Sunday Times, Streeting argued that cutting NI for businesses could incentivise hiring, particularly of younger workers.
A report by former cabinet minister Alan Milburn highlighted that a lack of hospitality jobs is contributing to high youth unemployment in Britain, with vacancies in the sector halving over the past 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 increased from 13.8% to 15% in 2024, with the starting threshold lowered from £9,100 to £5,000, raising £25bn annually. Businesses have criticised the move, saying it discourages hiring lower-paid and part-time staff. Pat McFadden, the work and pensions secretary, defended the policy, noting that NI is already waived for workers under 21, and argued that the increased revenue has helped reduce NHS waiting lists.
On North Sea drilling, Streeting expressed support for granting consent to develop the Rosebank and Jackdaw oil and gas fields, which were licensed under the previous Conservative government. Energy secretary Ed Miliband is expected to decide shortly, weighing the projects' consistency with climate commitments. Streeting predicted Miliband would approve the drilling, saying it would boost tax receipts even if it does not lower energy bills.
Streeting has openly called for Keir Starmer to resign and intends to stand in any leadership contest. The current frontrunner is Andy Burnham, the mayor of Manchester, who is Labour's candidate in the Makerfield by-election on 18 June.
