Wes Streeting has proposed a cut to employers' national insurance contributions and new North Sea oil and gas drilling licences, as the former health secretary positions himself ahead of a potential Labour leadership contest.
In an interview with the Sunday Times, Streeting said there should be a 'targeted reduction' of employers' national insurance (NI) as a way to 'actively incentivise' hiring, particularly of younger people. He also backed issuing new licences for oil and gas drilling in the North Sea, a policy that marks a clear break with the current government's approach.
“Wes Streeting has called for cuts to employers' national insurance and new North Sea drilling licences as he positions himself for a potential Labour leadership contest, distancing himself from Keir Starmer's policies.”
The proposals come as Streeting continues to distance himself from policies pursued by Sir Keir Starmer's government. The prime minister has faced mounting pressure from within his own party, with former Labour PM Sir Tony Blair accusing the government of having 'no coherent plan' for the country.
Starmer hit back at Blair on Sunday, defending his policy decisions and insisting the government is delivering on its promises. Speaking to the BBC, Starmer said he respected Blair but argued that the country needs 'long-term change, not short-term fixes'.
Streeting's intervention is widely seen as a bid to rally support among Labour MPs and party members ahead of a leadership contest expected within the coming months. The former health secretary has been touted as a potential successor to Starmer, and his latest proposals are intended to appeal to both business leaders and traditional Labour voters.
On the North Sea, Streeting's call for new drilling licences represents a significant departure from the government's current energy policy. The government has repeatedly stressed its commitment to net-zero emissions and has resisted calls to expand fossil fuel extraction. However, Streeting argues that domestic oil and gas production is necessary to ensure energy security and reduce reliance on foreign imports.
Environmental campaigners have long opposed new North Sea licences, warning that they would undermine the UK's climate targets. The North Sea Transition Authority, which oversees licensing, has said that new fields could still be compatible with net-zero if the oil and gas is produced with lower emissions than imports.
Streeting's proposal to cut employers' national insurance would also represent a major fiscal change. The current government has raised NI for employers and employees, but Streeting says a targeted cut for businesses could boost hiring, especially among younger workers who face higher unemployment rates. 'We need to make it easier for businesses to hire, and cutting their national insurance costs is one way to do that,' he said.
The leadership contest, if it goes ahead, is likely to dominate Westminster politics in the coming months. Other potential candidates are expected to set out their own policy platforms, with the economy, energy and public services set to be key battlegrounds.
What this means for you - If implemented, a cut to employers' national insurance could make it cheaper for businesses to take on new staff, potentially boosting job opportunities, particularly for young people entering the labour market. - New North Sea drilling licences could affect the UK's energy mix and influence household energy prices, though the immediate impact on bills is unclear. - The proposals are part of a wider leadership debate that could shape the direction of economic and energy policy, with implications for businesses, workers and the environment. - Supporters argue the plan would strengthen energy security and reduce reliance on imports, while critics say it would slow the transition to renewable energy and increase carbon emissions.