Steve McCabe – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Steve McCabe on 2016-09-13.
To ask Mr Chancellor of the Exchequer, what assessment he has made of the combined effect of the Apprenticeship Levy, the National Living Wage and the increase in auto-enrolment charges on FTSE 250 companies’ employment spend.
Mr David Gauke
The Government is taking action to build an economy that works for everyone. We have committed to improve the technical and professional skills of the workforce by putting control of apprenticeship funding in the hands of employers, to boost the wages of the lowest paid, and, through Automatic Enrolment and pensions tax reliefs, to support people in saving for retirement. At the same time, we are supporting business with a competitive and fair tax system, including the reduction of the corporation tax main rate from 28% to 20%. Finance Act 2016 cut the rate further, to 17% in 2020, ensuring the lowest rate in the G20.
The Government has not produced a combined assessment of the effect of these specific policies on employment spend for this group of companies. The costs and benefits to business of regulatory measures such as the National Living Wage and Automatic Enrolment are set out in impact assessments (available at legislation.gov.uk and gov.uk respectively), and the independent Office for Budget Responsibility takes the impact of government policies on the economy into account in producing its forecasts.
