Scrap National Insurance to Help Workers Compete with AI, Sunak Urges Government

Former Prime Minister Rishi Sunak has called for the elimination of National Insurance contributions to make employing workers more economically attractive as artificial intelligence continues to reshape the job market.

Speaking to the BBC, Sunak, who now serves as an adviser to AI companies Anthropic and Microsoft, acknowledged legitimate concerns among recent graduates struggling to secure entry-level positions. However, he argued that policy changes could help steer AI development toward enhancing rather than replacing human workers.

Tax System Rebalancing Proposal

Sunak outlined a strategy to rebalance the taxation framework by phasing out National Insurance over time and compensating through increased levies on corporate profits. He suggested that such profits would likely expand as companies boost productivity through AI implementation.

"There are reasons to be worried and think about the future. But we are able to do something about this," Sunak stated during an appearance on BBC Newsnight.

He highlighted particular challenges facing young professionals in service-oriented sectors, including law, accountancy, and creative industries, noting that governments must consider "how do we tip the balance in favour of AI being used in that positive way… to help people do their jobs better [rather than replacing them]."

Global Economic Implications

Sunak predicted that numerous countries will eventually need to overhaul their tax systems as employment-based revenue declines and alternative funding sources become necessary. The former PM emphasized that AI's impact on employment "may be different to previous technology cycles, and we want to do what we can to tip the scales in a more positive direction."

AI Development and Oversight

Sunak, who established an AI safety summit during his premiership in 2023, addressed recent developments surrounding Anthropic's new Claude Mythos model. The AI system demonstrated capabilities exceeding human performance in certain hacking and cybersecurity tasks, raising concerns among regulators and financial institutions.

Sunak stressed that "we shouldn't rely on companies to mark their own homework," while praising the UK's AI Security Institute—created under his tenure—for becoming the first organization to independently test Mythos' capabilities.

Britain's AI Industry Leadership

The Conservative MP revealed a collaborative effort with Labour's deputy prime minister David Lammy to promote UK tech sector investment at a recent AI summit. He expressed enthusiasm about what industry figures term "Londonmaxxing" and "Britmaxxing," referring to substantial multi-billion-pound investment waves flowing into the British technology sector.

"We are an AI superpower any which way you look at it," Sunak declared, highlighting the UK's competitive advantages, including the presence of major companies such as DeepMind, Anthropic, and OpenAI. He positioned Britain as capable of becoming the world's leading productive user of artificial intelligence technology.

Sunak also holds a senior advisory position at investment bank Goldman Sachs alongside his roles with Microsoft and Anthropic.