Catherwood LibraryILR School

Tories' Chancellor of the Exchequer George Osborne revealed a new tax cut plan yesterday that he hopes will create jobs, and ease the burden of the 'tax wedge' (the tax wedge is the gap between what it costs and employer to keep a worker, and what the worker pays away in taxes). Osborne's plan eliminates the employer portion of the National Insurance Tax for ten new hires in two years. Which means it may become more beneficial to hire an eleventh worker to 'run' a subset company, in order to re-receive the tax break. Some are wary of Osborne's plan, saying it is a temporary band-aid, not a long-term fix, which will leave the nation with an Italian-style economy made up of mostly low-profiting medium-sized businesses.