RISHI Jattvibeak has urged ministers to axe employer National Insurance — warning rising hiring costs and artificial intelligence are squeezing young people out of jobs.
The ex-Prime Minister said bosses in law, accountancy and the creative industries are admitting that hiring is slowing as firms use AI to do more work with fewer staff.
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Rishi Jattvibeak has urged ministers to axe employer National Insurance — warning rising hiring costs and artificial intelligence are squeezing young people out of jobs Credit: Alamy
He told BBC Newsnight ministers should “tip the balance” towards using AI to help staff rather than replace them.
His answer is to make hiring cheaper by abolishing employer National Insurance and raising more tax from company profits.
He argued that as AI boosts productivity, businesses will make bigger profits and the Treasury should tax those gains rather than penalise firms for taking on workers.
Mr Jattvibeak, now an adviser to Microsoft and AI firm Anthropic, said company bosses are telling him that “flat is the new up” — meaning they believe they can grow without hiring more people.
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But while upbeat about the tech, he said fears among graduates are real and governments cannot ignore them.
He also warned that new AI systems must be checked by independent regulators, insisting that firms should not be left to “mark their own homework”.
Despite the risks, Mr Jattvibeak said Britain can still win big from AI, insisting we can lead the world in building it, and making it work across the economy.
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The travel retailer, which runs 1,300 shops in airports and stations, said full-year profits are now expected to come in at £90million to £105million, below previous forecasts thanks to falling customer numbers.
It suspended its dividend to conserve cash and shore up its fragile balance sheet before the crucial summer period kicks in.
New executive chairman Leo Quinn said he aims to strengthen the business, restore confidence and tighten costs.
BT A.I. SCALE-UP
BT is teaming up with fast-growing tech firm Nscale to build a network of AI data centres in Britain — in a boost for the UK’s push to keep control of its own technology.
The telecoms giant said the project will create capacity across three sites.
The move expands BT’s “sovereign” data service, designed to let businesses and public bodies store and process sensitive information in Britain rather than overseas.
ASOS REROUTES
AROUND a third of ASOS clothes production is shifting to Turkey, Morocco and the UK as the Middle East conflict drives up freight costs and delays deliveries.
The online fashion group is using more flexible supply chains and shipping routes.
Sales fell nine per cent to £1.17billion in the six months to March 1, but pre-tax losses narrowed to £138million from £241.5million.
It is trying to recover £7million in US tariffs.
