Reform UK pledges new tax on firms hiring foreign workers

Reform UK has revealed plans to introduce a tax on companies that hire foreign workers, aiming to reduce the National Insurance (NI) contributions employers pay on their British employees if the party wins the upcoming general election. The intention behind this policy is to encourage businesses to prioritize British workers over migrant labor, with the party emphasizing that unemployed UK residents should be given preference for available jobs.

The proposed tax would be a tiered levy focusing primarily on lower-paid roles, with further specifics expected following a consultation process with businesses. According to Reform UK’s Treasury spokesman, Robert Jenrick, this measure is designed to end what he described as “the cheap migrant labour racket once and for all.” The plan includes exempting British workers from the increased NI contributions introduced last year, while maintaining the higher payments for foreign staff members.

Speaking in London, Jenrick estimated that this proposed NI cut for British employees would cost the Treasury approximately £11.2 billion. However, he expressed confidence that the funds could be offset through the new tax on foreign workers. The levy would decrease as wages increase, aiming to discourage reliance on inexpensive migrant labor without disadvantaging firms hiring highly skilled foreign talent. For example, he suggested the tax might be set around £3,750 annually for companies employing full-time foreign workers paid at the minimum wage, tapering to £1,500 for those earning £50,000 a year, and further to £500 for salaries around £100,000. Jenrick declined to provide complete rate details, deeming it premature given that the next election could be years away.

Besides the tax, Reform UK has also pledged to end the automatic right for migrants to settle permanently in the UK after five years, requiring them to either apply for citizenship or reapply for temporary work visas with higher salary thresholds. Jenrick acknowledged this could shrink the tax base for the levy but argued that any revenue loss would be balanced by reduced public spending on benefits for unemployed British nationals. The initiative is expected to particularly affect sectors like retail, hospitality, manufacturing, and private care providers, which tend to employ a higher number of foreign workers. Jenrick suggested these employers should consider increasing wages to attract British workers, asserting that many jobs currently held by migrants “should be done by Brits.”

This announcement comes as Reform UK prepares for a critical by-election in Makerfield, where it faces competition from Restore Britain, a new party founded by former Reform MP Rupert Lowe. Party leader Nigel Farage has recently stated that Reform plans to ban foreign nationals from residing in social housing and has pledged to reduce VAT for small businesses. However, the party’s policies have faced criticism. Conservative shadow chancellor Sir Mel Stride accused Reform of launching an “reckless and expensive by-election campaign,” dismissing their promises as uncosted and gimmicky, stating they lack a serious plan for government

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