The government’s mission to ease the burden of taxation on businesses and the people they employ appear to be having positive benefits in job creation.
Businesses are now finding themselves paying significantly less in taxes when they hire staff than was the case four years ago in 2012 when employers were paying in excess of 10% in employment taxes.
The cost of taxes on employees salaries now amount to 8% of what they earn, which is far less than other countries such as the Netherlands, where businesses have effectively seen a doubling of taxation.
High levels of employment tax can act as a drag on wage growth, which then feeds into lower levels of consumer spending, something most countries rely on to drive positive economic growth.
The introduction of the so-called living wage and employers now paying less national insurance for employees under 21 means that both employers and younger employees will experience some significant benefits from the measures that have been introduced to help sustain economic growth.
Unemployment in the UK currently stands at a 10-year low 5.1% while wage growth increased by 2.1% in the three months to January although the latter remains below the level it was before the global financial crisis.