Should companies pay an 'automation tax' when replacing human workers with artificial intelligence?
Rising AI adoption in the UK has intensified debate over its effect on employment, with businesses automating tasks but few reporting outright job cuts so far. Employer National Insurance contributions rose in 2025, increasing the relative cost of human staff while AI investments can be written off. Figures including Bill Gates, James Reed and tech entrepreneurs have called for an 'automation tax' or 'robot tax' to level the playing field, fund retraining and protect the tax base as labour income falls.
1 Opinion
Taxing automation is a backward Luddite trap that will leave Britain lagging behind while the rest of the world powers ahead. If we slap a penalty on using modern tech, companies won't magically keep staff, they’ll just relocate their operations to Ireland or the US, costing us the jobs anyway.