Government NI hike could cost 57,000 jobs

The government has been urged to abandon planned rises in national insurance that is claimed would cost 57,000 jobs.

The centre for economics and business research (cebr) calculates that a 0.5% rise planned for April 2011 would lead the loss of 57,000 jobs.

The centre argues that the increase would be counter productive as it would cost the Treasury around £990m in extra benefits, while raising only a small amount of additional taxation.