Andy Burnham has been called on to make reversing the increase in employers’ National Insurance contributions one of his first priorities in government, claiming the policy has damaged businesses and weakened the jobs market.

Arbroath and Broughty Ferry MP Lara Bird said the rise in National Insurance contributions had increased costs for employers at a time when many businesses were already facing significant financial pressures.

The comments come alongside new analysis commissioned by the SNP from the House of Commons Library, which the party says shows unemployment has risen since the Labour government came to power in July 2024.

According to the analysis, the number of unemployed people in the UK increased from 1.48 million in July 2024 to 1.76 million in April 2026.

The research also highlights a reduction in job vacancies, falling from 867,000 in July 2024 to 707,000 in April this year.

Youth unemployment has also increased over the same period, with the number of unemployed people aged between 16 and 24 rising from 618,000 to 735,000.

The SNP argues that the increase in employers’ National Insurance contributions from 13.8 per cent to 15 per cent has added costs for businesses, making it more difficult to recruit staff, invest and expand.

Lara Bird MP said:

“Andy Burnham must urgently think again and scrap the Labour Party’s National Insurance tax hike, which has destroyed jobs and been a disaster for small and medium-sized businesses.

“This was an incredibly short sighted Labour government policy, which has created a high cost, toxic environment for businesses across Scotland and the UK, cutting jobs, squeezing wages, reducing investment and choking off economic growth.

“I want businesses across Scotland to thrive but damaging UK government policies, including the National Insurance tax hike and Brexit, are holding them back and costing Scotland billions.

“The UK jobs market has significantly weakened under the Labour government and the UK now faces a growing unemployment crisis as a result of damaging Labour Party policies.”

The increase in National Insurance contributions has been the subject of continuing political debate, with business groups warning about rising operating costs while supporters argue the measure is necessary to help fund public services.

The issue is expected to remain a major talking point as businesses, employers and political parties continue to debate the future direction of the UK economy.