Back to today’s briefing

Story perspectives

Bank of England Blasts Labour's Tax for Job Losses

6/27/2025

40 9

Summary

Story summary

Bank of England Governor Andrew Bailey condemned the UK Labour government's payroll tax for causing job losses.
He highlighted that the tax contributes to reduced worker earnings and increased food prices.
Bailey emphasized that inflation risks are “two-sided,” citing evidence of shifts in pay and employment.
The £26 billion rise in National Insurance Contributions took effect in April.

1 of 1

Story summary

Bank of England Governor Andrew Bailey condemned the UK Labour government's payroll tax for causing job losses.
He highlighted that the tax contributes to reduced worker earnings and increased food prices.
Bailey emphasized that inflation risks are “two-sided,” citing evidence of shifts in pay and employment.
The £26 billion rise in National Insurance Contributions took effect in April.