Rishi Sunak Advocates National Insurance Abolition to Counter AI Job Displacement
Former Prime Minister Rishi Sunak has urged the elimination of National Insurance to make human labour more attractive, proposing a rebalancing of the tax system towards corporate profits. Sunak, now an adviser to AI firm Anthropic and Microsoft, acknowledged the increasing difficulty for graduates to secure entry-level positions in sectors such as law, accountancy, and creative industries due to AI's disruptive influence.
Sunak stated that while he is an enthusiast for AI's transformative potential, concerns regarding job displacement are justified. He suggested that abolishing National Insurance 'over time' and replacing it with taxes on corporate profits would leverage the increased productivity and efficiencies AI deployment could bring.
He noted that many nations will need to reconsider their fiscal frameworks as employment-based tax revenues potentially decline. Sunak emphasised the need to 'tip the scales in a more positive direction', distinguishing AI's potential impact from previous technological shifts.
Last year, Sunak joined Anthropic and Microsoft as an adviser. His tenure as Prime Minister saw significant focus on technology regulation, including the establishment of an AI safety summit in 2023. Anthropic recently unveiled its new AI model, Claude Mythos, which reportedly surpasses human capabilities in certain hacking and cyber-security tasks, prompting regulatory scrutiny. Sunak, also a senior adviser at Goldman Sachs, stressed that 'we shouldn't rely on companies to mark their own homework' regarding such advancements, crediting the UK's AI Security Institute for being the first to test Mythos.
The Conservative MP also revealed collaboration with Labour's deputy prime minister, David Lammy, to promote investment in the UK tech sector. Sunak expressed confidence in 'Londonmaxxing' and 'Britmaxxing' — terms used to describe multi-billion-pound investments in the sector — asserting the UK's status as an 'AI superpower' and its opportunity to become the world's leading productive user of AI.
