What exactly did Labour’s manifesto say about National Insurance?

Over the last week, there’s been some speculation about whether Labour will raise employer National Insurance contributions (NICs) in its first Budget, later this month. 

At Prime Minister’s Questions on 9 October, Conservative party leader Rishi Sunak asked the Prime Minister Sir Keir Starmer if “when he promised not to raise income tax, national insurance or VAT, that commitment applies to both employer and employee national insurance contributions?”Mr Starmer said he wouldn’t be drawn on decisions to be included in the Budget, but added: “We made an absolute commitment to not raise tax on working people”. 

The phrase “National Insurance” appears once in Labour’s 2024 election manifesto.

It said: “We will ensure taxes on working people are kept as low as possible. Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of Income Tax, or VAT.” 

On Sky News’ Sunday Morning with Trevor Philips yesterday, business secretary Jonathan Reynolds was asked if the pledge applied to both employee and employer NICs. 

Mr Reynolds said: “You know that pledge was taxes on working people, so it was specifically in the manifesto a reference to employees, and to income tax and a whole range of commitments.” 

Some have interpreted this to mean that a rise in employer NICs has not been ruled out, or to be a comment on the “strategic ambiguity” of Labour’s manifesto commitment. 

Full Fact will be monitoring the upcoming Budget later this month, as well as tracking progress on the government’s manifesto commitments.