Class 4 National Insurance Contributions

Angela Eagle Excerpts

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

I am grateful to my right hon. Friend. We have, absolutely, recognised the view of colleagues on the crucial issue of the manifesto commitment. However, on the substantive issue of the differences in treatment of people who are employed and people who are self-employed, there is a fundamental structural challenge that will have to be addressed, and that includes the question of how we extend appropriate benefits to people who are in self-employment, so that they get the full range of entitlements, as well as contributing in an appropriate way. We are clear that the right thing to do now is to rule out any increases in national insurance contributions during this Parliament, but that does not mean that we should not do the work, carry out this review and present our findings in due course, and we will do so.

[Ms Angela Eagle (Wallasey) (Lab)]

Of 28 measures in this Budget, the Chancellor has had to come in a humiliating fashion to the House today to cast away the one that actually raised money. He has just told us that £14 billion of tax revenue is at risk because of the way national insurance is encouraging people to become, apparently, self-employed, and encouraging other abuses. He has told us he is not going to deal with that in this Parliament, so what is he going to do to safeguard the tax base in the meantime, while he does his review and belatedly puts into effect the manifesto commitment on which he fought the last election?

[Mr Hammond]

I have to say that that was an extraordinary contribution, because the hon. Lady cannot have it both ways or, to put it another way, have her cake and eat it. She wants me to adopt a broad interpretation of manifesto commitments and to adhere to it, and she wants me to protect the revenue base by addressing the difference in contribution treatment between the employed and the self-employed. I say to her, as I have just said to my right hon. Friend the Member for Loughborough (Nicky Morgan), that we will have to address that difference in due course. However, given the interpretation that is clearly out there of the manifesto commitment that was made, our priority now is to show that we will deliver on the spirit as well as the letter of that commitment, and we will not increase national insurance contributions in this Parliament.