National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Lord Livermore and Lord Wolfson of Aspley Guise

Committee stage
Tuesday 4th February 2025 Grand Committee

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, I am grateful to all noble Lords for their contributions to this debate. I will address the amendments tabled by the noble Baronesses, Lady Noakes and Lady Neville-Rolfe, which would phase in the introduction of the secondary threshold cut to £6,760 in the next tax year and £5,000 from 2026-27.

I absolutely appreciate the concerns raised by noble Lords during this debate, and by businesses, about the impacts of the Bill. It was a privilege to hear the insights and expertise of the noble Lord, Lord Wolfson, and I greatly appreciate the constructive spirit of his contribution. However, as I have set out previously in this Committee, the Bill is necessary to repair the public finances, to protect working people and to invest in Britain’s future, including by providing more than £20 billion extra for the NHS over this year and next. This funding will reduce waiting times by supporting the NHS to deliver 40,000 extra elective appointments a week and will make progress towards the commitment that patients should expect to wait no longer than 18 weeks from referral to treatment. Reducing the threshold by less than that set out in the Bill would reduce the revenue generated by it and would therefore introduce new pressures, which would have to be met by more borrowing, lower spending or alternative revenue-raising measures.

Given these points, I respectfully ask the noble Baroness not to press her amendments.

[Lord Wolfson of Aspley Guise (Con)]

Before the Minister sits down, can he say how much this amendment and the resulting delay would cost the Government? That would help those of us on this side of the Committee to understand why this is not possible.

[Lord Livermore (Lab)]

The Government tend to cost the Government’s policies. It is not usual practice for the Government to cost Opposition policies.