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Reform UK Proposes Tax Breaks for British Hires and New Levy on Foreign Workers

The plan would cut employers’ national insurance for UK nationals while keeping higher costs for overseas staff and adding a per‑worker migrant levy, a move that could raise legal and diplomatic issues.

Overview

  • Reform’s treasury spokesman Robert Jenrick unveiled the policy at Reform headquarters on Monday, June 15, saying employers would pay a lower employer National Insurance rate when they hire British workers but continue to pay the higher 15% rate for foreign hires.
  • The party also proposed a graduated Migrant Worker Levy to be charged per overseas employee with illustrative rates reported up to £3,750 for a minimum‑wage worker, though final rates and the detailed design will be set nearer a general election.
  • Jenrick said EU citizens with settled status would generally not count as ‘British workers’ under the plan, a choice that commentators warn could weaken post‑Brexit settlement guarantees and invite legal challenges from individuals and the EU.
  • Independent analysts and opinion pieces flagged practical problems with the scheme, including how employers would be asked to determine nationality or status, how the levy would be administered, and whether expected savings from reduced welfare spending are realistic.
  • Coverage has split on implications and tone, with Reform and allied outlets emphasising the policy’s aim to boost British employment while other outlets warned it could trigger court cases, trade tensions with the EU, and costly rule‑making if it reached government.