National Insurance Contributions (Secondary Class 1 Contributions) Bill

Baroness McIntosh of Pickering Excerpts

Report stage
Tuesday 25th February 2025 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I take this opportunity to support the sentiments of the noble Baronesses, Lady Barker and Lady Kramer, in tabling these amendments, in particular Amendment 9A. I declare my interest as advising the board of the Dispensing Doctors’ Association. I wonder whether, when the Minister comes to respond to this group, he could clarify the position. I noticed that dispensing doctors are not referred to in Amendment 9A, but in effect they probably employ more staff than other GPs, pharmacies or organisations itemised in the amendment.

The reason for that is that, in addition to dispensing to regular patients, dispensing doctors also perform a profoundly important role in rural areas where there is no community pharmacy, because their patients have nowhere else to go. A dispensing doctor normally intervenes to dispense in those rare circumstances. I have to say that the reason I am so familiar with dispensing doctors is that my late father and my now retired brother were both dispensing doctors.

As dispensing doctors are quite large employers in this regard, is the Minister minded to look favourably on reimbursing them for the additional costs that they will incur through the increase in national insurance contributions, either through the very helpful amendment moved by the noble Baroness, Lady Barker, by adding dispensing doctors to it, or will he look at some other avenue to ensure that the costs incurred by dispensing doctors will be met? I am sure the Minister is aware that pharmacies and dispensing doctors are currently not being fully reimbursed for the costs of medicines that they are dispensing or prescribing, so they are in an acutely difficult position caused by the Government’s announcements on national insurance contributions in the last Budget. I ask him to answer those points in addition to those raised by the noble Baroness, Lady Barker.

[Lord Hope of Craighead (CB)]

My Lords, I support the amendments in this group, which seek to mitigate the effect that the measures in this Bill will have on charities that provide social care. Particular attention needs to be paid to those that provide services in areas where the primary responsibility lies on the public sector. I understand that about one-third of social care staff in Scotland are employed by the voluntary sector. The support that they provide is an essential part of the system of social care in Scotland as a whole, and without their support the public services as currently funded would be quite unable to meet what the public need demands of them.

To put a little colour on what I have just been saying, I will return very briefly to an example I gave to the Grand Committee—that of the Cyrenians, a charity that addresses the causes and consequences of homelessness in the south-east of Scotland. It sees homelessness as something which is always about much more than a lack of housing; it cannot be solved simply by building more houses, nor can it be solved by the public sector alone. What the Cyrenians do is help people to avoid becoming homeless in the first place. It provides a range of services, such as mediation and support to families that are at risk of breakdown—which leads in due course to homelessness of one partner or the other.

The Cyrenians charity also provides services to ensure that people coming out of hospital are not discharged into homelessness. It runs a residential community which provides accommodation for people with acute psychiatric and mental health problems who have been discharged from a hospital where they have been receiving treatment. These are people who can be discharged only because that support is available.

All in all, the Cyrenians run over 60 services with a staff of over 200. It estimates that the increase to national insurance contributions provided for in the Bill will cost it about £170,000 a year. This is a significant burden on its finances which, for various reasons, are already being stretched very thin. I am told that it cannot benefit from any increase in the employment allowance. The Minister will correct me if I am wrong, but the charity believes that it is not eligible, as its class 1 national insurance liabilities were more than £100,000 in the last year. The public sector exemption is not available either.

The result is that the charity will no longer be able to provide the training and development that its staff need. That will lead, inevitably, to an erosion in the extent and quality of the service that it offers. Those who will suffer will be those most in need of protection: those who are at risk of, or who are already suffering from, homelessness, for whom the public services cannot provide.

Another Scottish charity that works in the area of social care is Ark Housing Association. It is a larger organisation which is in a similar position to that of the Cyrenians in that it seeks to provide services across a large area of Scotland. In its case, these services are offered to vulnerable adults, such as those with a learning disability and other complex needs. As matters stand, that charity too is not eligible for any support from the Government, as it has a turnover of about £24 million per year and employs over 700 people. It estimates that the effect of the Bill on its operations will be, in its own words, “devastating”.

As matters stand, the charges that it faces to do its work barely break even, year after year. It estimates that its national insurance increases will amount to a further £600,000 per year. This means that it will not be able to survive without damaging cuts to its services to reduce costs, and even these may not be enough for it to survive. As in the case of the Cyrenians, the people most affected are the thousands of vulnerable people for whom the social care that Ark provides is a vital lifeline, and who have nowhere else to go.

It is not an exaggeration to say that, as the Bill stands, social care and support providers in the third sector in Scotland will face a situation of crisis that the public services simply cannot cope with. Something has to give, and the responsibility for this lies with the Government. I hope that the Minister will feel able to assure the House that he recognises that something needs to be done to minimise the impact of these increases on this sector. For the time being, however, I will support the noble Baroness, Lady Barker, if she decides to press her amendment.

Inheritance Tax, National Insurance and VAT

Baroness McIntosh of Pickering Excerpts

Monday 27th January 2025 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate the noble Lord, Lord Morrow, on securing this debate. I will focus my remark on the Budget proposals threatening to break up and cause the collapse of family farms, in turn taking land out of food production while also threatening prospects for tenant farmers.

This proposal is economically illiterate. The current policy was permitted in the first place precisely because farms are capital rich and cash poor. Farmers contribute significantly to the UK economy. The figures from the ONS demonstrate that, in 2022, agriculture contributed £12.7 billion to England’s GVA—of which Yorkshire and the Humber contributed almost £1.5 billion—and in Scotland agriculture contributed £2.5 billion. So why would any Government imperil that part of the economy, and how much would it raise?

In the Urgent Question repeat today, the Minister admitted that figures from the OBR show that these proposals for APR and inheritance tax, taken together, will raise only £0.5 billion and not before 2029-30. As the OBR Supplementary Forecast Information Release of 22 January shows:

“the yield from this measure is not likely to reach a steady state for at least 20 years”

and that

“This policy costing was assigned a ‘high’ uncertainty rating”,


owing to the uncertainty of how farmers would respond to the measures

“given the range of options potentially available. This in turn adds uncertainty to the modelling of the behavioural responses”.

You could not make it up. It is a highly uncertain as well as highly undeliverable policy, representing a complete onslaught on rural life from a metropolitan elite, on top of the cancellation of the rural services delivery grant and planning laws leading to the destruction of the countryside. This is a cruel, nonsensical policy and should be reversed.

Climate Agenda

Baroness McIntosh of Pickering Excerpts

Thursday 24th October 2024 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome this debate, and I congratulate my noble friend Lord Lilley on initiating it. I too welcome my noble friend Lady May of Maidenhead to these Benches and warmly congratulate her on her formidable maiden speech. We entered Parliament together in the other place in 1997, and I served under her leadership in the shadow team for environment, food and rural affairs, so I can vouch that she is well versed in the issues before us today.

Personally, I accept that climate change is real and that we are subject to increasing extreme weather events. I would argue, as my noble friend Lord Ahmad did, that we need a global approach to tackling it, and we need to find international solutions of not just one country acting on its own but to act together with the EU, the US and the BRICS countries, which we saw meeting this week—otherwise, progress will be slow, and it could serve potentially only to penalise our own industry and households. I welcome the reality check by the then Prime Minister, my right honourable friend Rishi Sunak, who in September 2023 undertook a more pragmatic approach.

I would like to speak in particular to the impact of the climate agenda on rural affairs, and I have to say that it is not altogether a positive one. Let me take some examples from the recent Climate Change Committee progress report to Parliament. First, the ending of production of any cars other than electric vehicles by 2030 will be extremely challenging for rural areas. There is a lack of charging points in rural areas, and there is also a lack of range. Apparently, we have gone from charge anxiety to range anxiety. If a car can go only 200 miles maximum, without any heating, radio, windscreen wipers or air conditioning in the summer, we rural dwellers—in either summer or winter—will be lucky if we can go 100 or 150 miles without having to charge again.

Secondly, on the commitment to renewable energy, such energy is often generated on land in the north of England or Scotland, or offshore and brought in to coastal areas. Yet the energy created is transported across rural and coastal areas—away from the very communities that could do with that electricity more than some others—through ugly, intrusive pylons and fed into the national grid. There is a very strong argument for ensuring that, whether it is offshore or onshore wind, the energy generated serves communities close to where it is generated, which is what generally happens in Denmark and other Scandinavian countries. As a result, those rural communities would be more inclined to support this type of rural energy going forward. I fear that if the Government persist with plans to criss-cross the country with even more overhead line transmission pylons, there will be a revolt. The earlier REVOLT—Rural England Versus Overhead Line Transmission—campaign, started by Professor O’Carroll in North Yorkshire, may be dormant but it will be revived if this persists.

Thirdly, the recommendations to ramp up tree planting and peatland restoration both sound like good ideas, but we should be aware that it takes 200 years to create a peat bog. Realistically, while we can bring about modest achievements such as the peat dams we created through the Slow the Flow project to prevent flooding in Pickering and North Yorkshire, it takes 200 years to create a peat bog from scratch. Tree planting in inappropriate areas can in fact be extremely damaging: it can create more floods, rather than prevent them. Also, I firmly believe that trees should not be planted on most fertile, productive farmland.

As the right reverend Prelate the Bishop of St Albans set out, farmers have a key role to play in tackling climate change and achieving net zero. They have been the victims, particularly over the past 18 months, of the record rainfall taking large rafts of land out of production. My noble friend Lady May referred to 2023 being the hottest year on record; the last 18 months is the wettest period on record, particularly in England. Farmers would like to become more self-sufficient in energy production but, as I understand it, they are currently prevented from doing so by existing planning rules. The rules should be revisited to ensure that farmers can generate more of the energy they need, as other businesses are doing.

The rural economy provides the food we eat, and farmers are the powerhouse of rural communities. If we have learned anything from the current invasion and hostilities in Ukraine, it is that we need to boost our self-sufficiency in food, not least in fruit and vegetables, which is woeful: we are only 16% self-sufficient in fruit and vegetables. We also need to boost our food security. Food security and energy security are complementary and should go hand in hand.

The climate agenda should work just as well for rural areas as for urban ones. It should not undermine food production, jobs, growth and prosperity in rural communities, as it currently appears to do.

Procurement Act 2023

Baroness McIntosh of Pickering Excerpts

Tuesday 15th October 2024 Lords Chamber

[Baroness Twycross (Lab)]

I will look into that matter and write to the noble Lord on that point.

[Baroness McIntosh of Pickering (Con)]

My Lords, in their manifesto, the Government committed themselves

“through public sector targets to source locally-produced food”

to help farmers. We on this side would applaud that, but how does the Minister square that with the terms of the Procurement Act, which prevents farmers and others from bidding to be sources of food in schools, prisons and hospitals?

[Baroness Twycross (Lab)]

I am not aware of any particular measures that would prevent them from doing that, but I will look into that matter and revert to the noble Baroness.

Bus Fares: National Cap

Baroness McIntosh of Pickering Excerpts

Monday 7th October 2024 Lords Chamber

[Baroness Blake of Leeds (Lab)]

I completely agree with my noble friend. There is no point in having a regular train service if passengers cannot reach it by bus. It is always about the consideration of the last mile of a journey. If people get into their cars, they tend to stay there. It is a very important aspect that has been picked up by looking at the bus open data service. Bus companies sharing their data has been an enormous problem—anyone in the north of England knows that that helped prevent us bringing in an Oyster-style ticketing service across the north. It is crucial that we get this right and that all companies are obliged to share the information.

[Baroness McIntosh of Pickering (Con)]

Could I press the noble Baroness further? She has given a very positive answer on concessionary fares for the elderly, but her response does not actually give a commitment to continue the £2 fare. Could she give a more positive answer about the timetable and an assurance that there will be no cliff edge from 31 December this year, particularly for young people and those living in rural areas who do not benefit from the concessionary fare, which has played such a positive role in rural transport?

[Baroness Blake of Leeds (Lab)]

I hope I made it clear that the success of the scheme is well recognised. We have to look at all aspects to make sure that it is sustainable going forward and that we do not have to return to this in the future. So many people depend on this and it is very popular. Of all the schemes that have come into place, this one is very well known; the public actually know about it and this has led to an increase in patronage. People have changed their habits from using other forms of transport to using the bus. In my view, it has been a real success.