Finance Bill

Adam Dance Excerpts

Committee of the whole House
Tuesday 10th December 2024 Commons Chamber

[Adrian Ramsay]

As we heard earlier, it is vital that there is strong Government support and a dedicated plan to ensure transition to alternative job opportunities for anyone working in the oil and gas sector. Having a background in the renewable energy sector, I strongly support Government incentives and policies that will help that sector to expand, so that we create jobs and skills. My amendments would reverse the Government’s tax relief on the conversion of oil and gas infrastructure to carbon capture and storage installations. There are many other reliefs in the tax regime that should be addressed, but they are out of the scope of the Bill.

Carbon capture and storage is a complex area. There are different types of technology that use different techniques. I support further research and development in relation to the hard-to-abate sector, but CCS cannot be used as a fig leaf to hide the expansion of fossil fuel operations. In reality, after years of hype, the result is very little carbon—less than 0.1% of annual emissions—being captured globally. Most of the carbon dioxide that has been successfully captured has been used to extract more oil. The UK has also been criticised for targeting most of its CCS at so-called blue hydrogen, the use of which would increase our long-term reliance on gas and generate more carbon emissions.

The proposed tax relief is too blunt an instrument to make a useful contribution to decarbonisation. The role of CCS is still relatively untested, so it is vital that we do not bake in over-reliance on that technology. Public funding for CCS should be restricted to research and development, and to projects that would clearly help to decarbonise hard-to-abate sectors. It absolutely must not be a green light for fossil fuel companies to carry on with business as usual and an expansion of operations. Will the Minister explore the idea of reviewing the measures, in the light of what I have suggested?

[Adam Dance (Yeovil) (LD)]

In October 2021, we Liberal Democrats were the first to call for a tax on oil and gas windfall profits, so I am glad that the Bill is finally scrapping the unfair investment allowance loophole, after years of oil and gas companies not paying their fair share under the Conservatives. I urge the House to adopt our amendment, which calls on the Government to set out exactly how much money is being raised through the scrapping of the investment allowance loophole, and how much money was gifted by the last Government to the oil and gas giants. My constituents in Yeovil deserve full transparency.

I encourage the Government to use the money raised by closing the loophole to address energy and environmental issues impacting my constituents in Yeovil, such as fuel poverty, particularly among pensioners; the need to protect homes and businesses from flooding; the need to support farmers with green investments; and helping homeowners to install clean heating.

In conclusion, we must ensure that our constituencies get a fair deal out of the Bill. If the average taxpayer is expected to pay their fair share, then so must the wealthiest individuals and companies in this country. There cannot be one rule for them and another for the rest of us.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Adam Dance Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Adam Dance (Yeovil) (LD)]

I welcome some of the measures introduced in the Budget, such as more investment in the NHS to start repairing all the damage done to our local health services by the Conservatives. However, the increase to employer national insurance contributions is the wrong decision and will have a serious impact on key sectors and services across the country.

A few examples of such negative impacts stand out. First, on local authorities, I was glad to hear from Somerset council that it believes it will be fully compensated in the settlement for its share of the increase in employer national insurance contributions this year, but as the Minister knows, Somerset council works with care organisations and care homes to provide care for more than 5,000 people. As their share is not covered, those companies will need to increase their charges to Somerset council, impacting hugely on the council finances. Will the Minister commit to supporting the council with those extra costs?

Secondly, many community pharmacies that provide essential services in my constituency and across the country, affecting everyone, are struggling with existing financial pressures. The community pharmacy sector has faced a decade of funding cuts, and the NHS workload has increased. We have already lost 1,200 pharmacies from our communities since 2015. However, as independent contractors, pharmacies will not be exempt from the rise in national insurance. How does the Minister expect pharmacies to continue to support communities and the NHS when yet more pressure is being placed on them?

Finally, the Government have made funding and supporting access to nurseries a priority, which I welcome, but raising the national insurance rate for employers could worsen the shortfall of nursery funding, with parents having to pay. The Early Years Alliance said that 95% of childcare providers were set to increase fees, as the Government did not mitigate the national insurance contributions increase and the rise in the minimum wage. Will the Minister commit to supporting nurseries too?

In conclusion, raising national insurance is a tax on jobs that will deal a hammer blow to small businesses and struggling care providers. Should the Government not look to raise money by reversing the Conservatives’ tax cuts for big banks or by asking social media giants to pay their fair share, rather than burdening sectors that provide essential services to our communities?