Wes Streeting calls for NI cut for businesses and North Sea drilling

The Story

Wes Streeting, a former health secretary and potential Labour leadership candidate, has called for a targeted reduction in employers’ national insurance contributions to incentivise hiring, especially of young people. He also urged the government to grant drilling consents for the Rosebank and Jackdaw oil and gas fields in the North Sea. A report by Alan Milburn linked a lack of hospitality jobs to high youth unemployment, noting a halving of vacancies in the sector over four years. In 2024, employer NI rose from 13.8% to 15% and the threshold lowered, aiming to raise £25bn annually, but businesses said it discouraged hiring lower-paid staff. Work and Pensions Secretary Pat McFadden disagreed, defending the government’s record and citing existing exemptions for workers under 21. He claimed the NI increase helped reduce NHS waiting lists. Energy Secretary Ed Miliband is due to decide on the drilling licenses, considering UK climate commitments. Streeting has also stated he wants Keir Starmer to resign and intends to stand in a leadership contest, with Andy Burnham currently considered the frontrunner.

Key Facts

• Wes Streeting called for a targeted reduction of employers’ national insurance contributions to incentivise hiring, especially of young people.
• Streeting also called for the government to grant drilling consents for the Rosebank and Jackdaw oil and gas fields in the North Sea.
• A report by Alan Milburn stated that a lack of hospitality jobs was contributing to high youth unemployment, with a halving of vacancies in the hospitality industry over the past four years.
• Analysis shows Britain has the third-highest rate of 16- to 24-year-olds not earning or learning among rich European countries.
• In 2024, the employer national insurance rate increased from 13.8% to 15% and the starting threshold lowered from £9,100 to £5,000, aiming to raise £25bn a year.
• Businesses said the measure disincentivised hiring lower-paid and part-time staff.
• Pat McFadden, work and pensions secretary, suggested he disagreed with this view and defended the government’s record.
• McFadden said businesses already do not have to pay employers’ national insurance for workers under 21.
• McFadden claimed the increased national insurance rates had contributed to falling NHS waiting lists.
• There is a debate within Labour about whether to grant drilling consents for Rosebank and Jackdaw; the manifesto committed not to give new licences, but exploration licences were given by the previous government.
• Ed Miliband is due to decide on these fields in coming weeks, deciding if drilling is consistent with UK climate commitments.
• Streeting said he would be surprised if Miliband did not grant the consents, and that it would lead to higher tax receipts but not necessarily cheaper bills.
• Streeting has openly stated he wishes Keir Starmer to resign and wants to stand in a leadership contest.
• Andy Burnham is the current frontrunner in any hypothetical contest and is Labour’s candidate in the Makerfield byelection on 18 June.

Conflicting Reports

The source article presents conflicting views on national insurance policy: Wes Streeting advocates for a targeted reduction, while Pat McFadden defends the current rate and questions the cost of changes. On North Sea drilling, the article notes internal Labour debate about whether to grant consents for Rosebank and Jackdaw.

Still Unclear

No specific cost estimate for Streeting’s proposed NI reduction is provided. The exact date for Ed Miliband’s decision on Rosebank and Jackdaw is not given. It is unclear whether Streeting’s leadership bid will materialize given the upcoming byelection.

Misconceptions

No widespread misconceptions addressed in the source article.

Key Figures

• Wes Streeting: former health secretary, potential Labour leadership candidate
• Alan Milburn: former cabinet minister, author of report on youth unemployment
• Pat McFadden: work and pensions secretary
• Ed Miliband: energy secretary
• Keir Starmer: current Labour leader (mentioned as target of resignation call)
• Andy Burnham: Manchester mayor, Labour candidate in Makerfield byelection, frontrunner in hypothetical leadership contest

Sources: The Guardian