Gary Neville accuses Labour of making it harder for businesses to hire after £25bn tax hike

Gary Neville has publicly criticised Labour’s decision to raise employer national insurance, warning the move will make it harder for companies to take on staff and risks stifling growth in an already fragile economy.

The former Manchester United and England footballer, who was one of Sir Keir Starmer’s most prominent backers during last year’s election, said Chancellor Rachel Reeves’ £25 billion tax hike had been poorly timed.

“I honestly don’t believe that companies and small businesses should be deterred from employing people,” Neville told Sky News. “I think the national insurance rise was one that could have been held back, particularly given the state of the economy.”

Neville – who has built a multi-million-pound business portfolio spanning property, hotels and football – said he had hoped for greater stability following Labour’s election victory. “It’s been a tough economy for a good few years. I thought that once there was a change of government, we would see things settle,” he said. “But it’s not settling here – and, to be fair, it’s not settling in many parts of the world either.”

While backing the government’s decision to raise the minimum wage by 6.7% in April to £12.21 an hour, Neville said businesses were under severe strain. “I don’t think we can ever criticise the government for increasing the minimum wage,” he said. “People should be paid more. But the national insurance rise is a challenge.”

Neville joined Labour in 2022, saying the party “has to come towards the centre”, and took part in a half-hour campaign film with Starmer in the Lake District during the election, describing the Labour leader as a “serious politician”.

However, his latest comments place him alongside other entrepreneurs and business leaders who argue that the higher cost of employment will make recruitment harder and slow economic recovery.

“It’s tough. It’s really, really tough,” Neville said. “The cost of products, utilities, rents – everything has gone up. Certain sectors are struggling to operate because of rising costs and because people are finding it harder to support local businesses.”

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Gary Neville accuses Labour of making it harder for businesses to hire after £25bn tax hike