Reform UK Proposes Employer Immigration Tax, Farage Downplays Small Business Risks Amid Claims of a ‘Worklessness’ Crisis

Reform minimizes the threat of small businesses failing due to the proposed immigration tax on employers.

Nigel Farage claims the UK faces an issue with "worklessness" and encourages businesses to adapt and innovate to decrease dependence on migrant workers.

Political reporter @gurpreetnarwan

Thursday, May 30, 2024, 6:

Reform UK gatherings typically focus less on specific policies, yet the party has recently been engaging in some creative thinking sessions.

In its most recent proposal during the national election race, it has introduced a tax on employers for immigration.

Companies that hire foreign workers over British nationals will incur an extra charge on their national insurance payments, which will increase the tax rate from 13.8% to 20%.

The party thinks this measure could generate £20 billion for the treasury.

Nonetheless, certain exceptions apply.

The policy will not extend to the health and social care sector, which heavily relies on workers from abroad, casting uncertainty on the policy's impact on overall migration numbers.

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Tiny businesses that have less than five employees will be granted an exemption.

The party did not specify the implications for individuals holding settled status or those on spousal or family work visas.

When questioned about his ease with the possibility of companies failing, Nigel Farage, the honorary president of Reform, responded, "Some may fail, yet typically businesses innovate and usually only collapse when there's no demand for their offerings."

"Indeed, while expenses are important, the focus is primarily on innovation and transformation."

Mr. Farage stated that the purpose of the policy is to encourage employers to hire British citizens who are currently unemployed.

"He indicated that additional developments are expected next week."

He was taken aback by the possibility that businesses could transfer the expenses to customers, potentially triggering increased inflation.

"Mr. Farage stated, 'We are addressing the persistent issue of unemployment and seeking solutions.'"

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Subsequently, Mr. Farage retracted statements he made on Wednesday evening, where he suggested he could consider an agreement with the Conservative Party.

He indicated to The Sun that his party "could potentially discuss" matters with the Conservatives, but questioned "what will they offer me?"

He admitted that the election outcome was inevitable, with a Labour win highly likely.

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Mr. Farage expressed his focus on the future, aiming to influence the direction of the Conservative opposition in the UK.

In response to inquiries about potentially striking an agreement with the Conservatives, Mr. Farage clarified that his previous comments were made in jest.

He claimed his remarks during the interview with The Sun were "profoundly sarcastic," emphasizing that Reform had "absolutely no intention of taking any action whatsoever."

"He stated, 'We have absolutely no agreement with the Conservatives.'"

When questioned about the accuracy of his statements or if he was retracting them due to intense discussions with his party and leader Richard Tice after his comments, Mr. Farage responded, "we are completely in agreement."

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