National Insurance: Employer Contributions

Lord Forsyth of Drumlean Excerpts

Thursday 9th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

The noble Earl raises a key point. We have looked very carefully at charities and the voluntary sector. Many arts organisations have charitable status and there has been significant support in the tax incentives for charities. In fact, charities receive a better tax incentive in this country than in most other European countries. I know that it is not ideal and, as I say, it is not a decision we wanted to take. Unfortunately, the financial situation left to us by the last Government meant that we had to take it.

[Lord Forsyth of Drumlean (Con)]

My Lords, in Monday’s debate on national insurance, a number of noble Lords raised the issue of special needs transport conducted by local authorities which is contracted out. In his response, the Minister said that £515 million—the figure the noble Baroness has just cited—had been set aside for local government. But that is for local government employees and will not provide support for the additional costs being incurred to provide special needs transport. This is an important area, so will the Minister perhaps look at this again?

[Baroness Taylor of Stevenage (Lab)]

I agree with the noble Lord that special needs transport has been a significant burden on local government in recent years, and with little help from the last Government. However, in the Budget, the Government announced £2 billion of new grant funding for local government in 2025-26. That includes the £515 million to which he referred to help with national insurance contributions. That £2 billion covers special educational needs home-to-school transport. I am not saying that will totally solve the problem. We have a spending review in the spring where I hope we will be able to look at that even further.