Reform UK Proposes Tax on Hiring Foreign Workers
Reform UK has announced plans to impose a tax on companies that employ foreign workers, aiming to reduce the National Insurance (NI) contributions paid by employers on their British staff, if it wins the next general election.
The party contends that this measure would compel firms to prioritize "British workers first, migrant workers second" and encourage the hiring of unemployed British citizens.
Reform UK intends to introduce a graduated levy focused on lower-paid jobs, with comprehensive details to be disclosed after consulting with businesses.
Treasury spokesman Robert Jenrick stated that this policy would terminate "the cheap migrant labour racket once and for all." He explained that, if elected, Reform would exempt British employees from last year's increase in NI contributions paid by employers, while maintaining the higher rate for foreign staff.
At a news conference in London, Jenrick revealed that the party estimated this tax cut would cost the Treasury £11.2 billion, but he expressed confidence that the planned levy on foreign employees would cover this expense.
He added that the levy would decrease in accordance with wages to reduce the "easy lever of cheap foreign labour" without penalizing companies hiring "the most skilled people." He suggested a levy of £3,750 for companies employing foreign workers full-time at the minimum wage, which is an annual salary of £24,784 for those over 21.
Jenrick indicated that this amount could be reduced to £1,500 for workers earning £50,000 annually, and further to £500 for those earning £100,000.
However, he declined to provide the full proposed rates, stating it would be "irresponsible" to do so with up to three years remaining before the next election.
'Gimmicks and headlines'
Reform UK has also pledged to abolish the right of migrants to permanently settle in the UK after five years, requiring them either to apply for British citizenship or to reapply for temporary work visas with higher salary thresholds.
Jenrick acknowledged that this policy would cause the tax base for the proposed levy to "rapidly shrink," but argued that the reduced tax revenue would be offset by savings in benefits paid to unemployed British nationals who would be offered jobs.
This policy is expected to have the most significant impact in sectors such as retail, hospitality, and manufacturing, where companies are more likely to employ foreign workers.
It would also notably affect private companies employing carers, which, unlike public sector employers such as the NHS, have not been exempted from last year's National Insurance increase.
Jenrick suggested that such firms should consider raising salaries to attract British workers instead, adding that foreign nationals were "many doing jobs that the Brits should be doing."
Makerfield campaign
The announcement precedes a critical by-election in Makerfield scheduled for Thursday, where Reform UK aims to counter a challenge from the right by Restore Britain, a new party founded by former Reform MP Rupert Lowe.
On Sunday, Reform leader Nigel Farage stated that the party also intends to ban foreign nationals from residing in social housing. Additionally, the party pledged a VAT cut for smaller businesses last week.
Conservative shadow chancellor Sir Mel Stride criticized Reform UK's approach, accusing the party of "throwing out a litany of policies in the hope something sticks."
"In their desperation to try to win Makerfield, Reform are running the most reckless and expensive by-election campaign in history," he said.
"Announcing tens of billions in entirely uncosted promises is not serious. It's a symptom of a party that deals only in gimmicks and headlines, with no real plan for government."
A complete list of candidates standing in the Makerfield by-election is available here.
