IN less than three weeks, Labour’s reckless “jobs tax” comes in – mounting even more pressure on families and businesses right across Central Devon.

Let’s be clear about who will pay the price. It’s the hardworking families in our communities.

The Early Years Alliance (EYA) has raised serious concerns that the increase in employers’ National Insurance contributions could have devastating effects on local childcare providers.

Many of these nurseries are already struggling with rising costs, and the proposed tax increase could push some to the brink of closure.

In Central Devon, where families often rely on small, local nurseries, the reality of this increase will mean higher childcare fees. With nurseries forced to raise prices by as much as 10 per cent, working parents could be forced to reduce their hours or even leave their jobs altogether.

For some, this could lead to a knock-on effect of cutting back spending elsewhere, further straining the local economy.

But it’s not just childcare.

Local businesses, from retail shops from Ashburton to Okehampton, to the pubs and cafes that make our towns so welcoming, will also feel the hit from Labour’s latest tax-grab.

The planned 1.2 per cent rise in employers’ National Insurance may seem modest, but the reality is far more damaging.

From April 6, businesses will be forced to pay an extra £900 per employee on the average wage in National Insurance.

For small businesses across Central Devon, this will lead to difficult decisions – job cuts, wage freezes, and potentially even business closures.

As businesses scale back or freeze hiring, the economy suffers. We’ll see reduced economic activity, slower growth, and rising unemployment.

But with little business experience on the Labour front bench, it’s no surprise they don’t understand the devastating impact of their policies.

Retailers right across the country – including here in Central Devon - will likely raise prices, leading to higher costs for everything from the weekly shop to household goods. Local pubs and restaurants may have to increase prices, making it more expensive for families to enjoy a night out.

These price increases are not just a burden on business owners, they’re a direct blow to local families who are already doing their best to make ends meet.

And it gets worse. The policy also lowers the threshold at which employers must pay the tax, affecting part-time and low-wage workers who form the backbone of industries like retail and hospitality in our region.

For our local hospitality sector, this could mean further job losses, reduced hours, and even higher prices for customers.

Labour claims their jobs tax will fund essential public services, but I’m afraid their economic mismanagement means any money raised is likely to be wiped out.

If Rachel Reeves is serious about fostering growth, she needs to rethink this policy.

There are alternatives to burdening businesses with even more taxes. By gripping welfare at her emergency Budget in a few weeks’ time, savings can be found without harming the local economy and jobs.

Labour’s jobs tax is a ticking time bomb. Unless action is taken, our businesses, workers, and families will all pay the price.

Mel Stride

MP for Central Devon