National Insurance Contributions (Rate Ceilings) Bill

Andrew Murrison Excerpts

Tuesday 15th September 2015 Commons Chamber

[Harriett Baldwin]

My hon. Friend is absolutely right. This is part of a package of measures the Chancellor announced in the July Budget.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

The Office of Tax Simplification has been asked to look at proposals to merge income tax and national insurance. Will the Minister say where we are with that? In particular, what assessment has been made of its possible impact on pensioners?

[Harriett Baldwin]

My hon. Friend is correct. In the summer Budget, the Chancellor announced a consultation on behalf of the Office of Tax Simplification. It is currently undertaking its work. I expect my right hon. Friend to take its recommendations into account in due course.

Turning to the detail of this five-clause Bill, it provides that the rate of class 1 national insurance contributions paid by employees and employers must not exceed existing rates.

--- Later in debate ---

[Barbara Keeley]

I do not think that the hon. Gentleman is listening. I know that Conservative Members often sit there with their Whip’s brief and try to find a way of working in some point that the Whips have given them to say. [Interruption.] I do not know what the hon. Gentleman is looking at. The point is, as I said earlier, this is a gimmick because we do not need legislation. A commitment was given on this. All that is required is that the Government and the Prime Minister stick to that commitment. It is a question of delivering on what was pledged. We do not need a Bill for every single element of what a party has pledged in the run-up to an election campaign. I am questioning—and people outside the House are questioning—why we need a Bill for the Government to bind themselves not to increase the rates, which they have already set out. It is very strange indeed.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

I can understand why the shadow Minister does not want to comment on her new leader’s position, but will she comment on the shadow Chancellor’s position? The hon. Member for Hayes and Harlington (John McDonnell) recently said that he would commit his Administration to a 7% rise in national insurance and to a 2.5% increase in corporation tax. What she is saying now seems to suggest a change in position. Will she confirm that that is the case?

[Barbara Keeley]

We are not signalling any change of position. It is amusing to hear this from Conservative Members, after a tax-raising Budget that is taking £8 billion from British people through the insurance premium tax, and after they put VAT up to 20%—when they promised not to do it. The absolute gall of Conservative Members in raising these points is amazing.