Wednesday, November 06, 2024

Dear Labour... An idea for you.

The Labour government, in their most recent budget, have increased National Insurance on employers. That is, in effect, a tax on companies for each person they employ, which amongst other things will encourage them to avoid hiring, and to reduce their workforces.

One of the ways companies are already cutting workforces is via automation - checkout assistants are replaced by self checkout, fuel is provided via "pay at the pump", switchboard operators are replaced by chatbots and now AI, and so on. Automation represents a huge and upcoming shock to the labour market; it's going to hurt us all, really badly.

So, here's a suggestion:

Why not tax companies for each time a UK-based customer has to interact with a machine instead of a person? If I go to self-checkout, the supermarket gets taxed. If I phone my insurer and have to battle with an automated switchboard, they get taxed. And so on, and so forth. I'm not talking a huge tax, but a small charge multiplied by millions of interactions each day will quickly add up.

I would also note that the tax needs to be based on the location of the customer, not the chatbot/AI/whatever - if not, companies will respond by putting in thin UIs to all their terminals and put the intelligence offshore, and hosting their AIs out of the country. But tie it to the customer, and they can't so easily dodge it.

Anyway, there it is.