National Insurance Contributions (Secondary Class 1 Contributions) Bill

Aphra Brandreth Excerpts

Committee of the whole House & 3rd reading
Tuesday 17th December 2024 Commons Chamber

[Yuan Yang]

I have taken two interventions, which was the number I set for myself, and we do like sticking to numbers on the Government Benches.

I am proud that the Labour Government are asking the wealthiest individuals and largest businesses to pay a little more, so we can rebuild the foundations of our broken economy. That means: more money into the NHS, with £25 billion in NHS funding over the next two years, which is sorely needed in my constituency and across the country; and £7 billion for education in the next financial year, including £1 billion for SEND. Those are the kinds of decisions that would not be possible under the March 2024 forecast. Opposition Members may look at the OBR assessment of that forecast if they are in any doubt about that. Those decisions would not be possible if the Government were not taking important and serious decisions. That is why I stand, very happily, to support the Budget that we set out.

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

Let me begin by drawing attention to my entry in the Register of Members’ Financial Interests.

I support the amendment tabled by my hon. Friend the Member for Grantham and Bourne (Gareth Davies). Increasing employers’ national insurance contributions will be hugely detrimental not only to businesses, but to employees in my constituency. I have been contacted by many local businesses which have expressed disappointment about the Chancellor’s breaking of her manifesto promise not to raise national insurance contributions, anger that it has been done without a full realisation of the consequences for the wider economy, and fear that they may not be able to weather the impact of this decision. I want to take a few moments to share with the Committee some examples of organisations in my constituency that have reached out to me to explain why these amendments are so necessary.

Bradley Barns is a family-run nursery school in Malpas which provides full day care and early years education for nearly 80 families from the local community and surrounding areas. Access to quality childcare provision is vital for the many parents and carers who need to balance jobs with family life. Of course, Bradley Barns hugely values all its employees, and is keen to be the best employer it can be. It currently employs 24 staff whose skills, time and care are vital to children during their formative years. However, while the impact of the Bill might force some businesses to lose staff, in the nursery sector, where the child-to-staff ratio is so critical—indeed, it is a legal requirement—Bradley Barns cannot do that, and nor would it want to. Matt and Vicky, who run Bradley Barns, tell me that as a direct result of this policy, they will now need to find an additional £2,600 every year for each person whom they employ.

The Government made clear in their manifesto that they would not tax working people, so who exactly does the Chancellor think will be paying for her decision? It will be working people in Chester South and Eddisbury and across the country, and at many nursery schools like Bradley Barns they will be left with no option but to increase fees. For some families, the increase will not be affordable: that is the harsh reality of the Government’s choice.

I also want to highlight, as others have, the impact on the many hospices that provide vital support and care for people at the most vulnerable time in their lives. I recently visited St Luke’s Hospice and the Hospice of the Good Shepherd, two of the wonderful hospices caring for individuals and families throughout my constituency, and met their leaders and staff. We know about the funding challenges that such hospices already face. They rely on the good will and generosity of so many people who donate. This ill thought-through Bill will add substantially to their costs, and none of us wants to see them forced to cut services or reduce the level of care that they provide. I sincerely hope that hospices, and the people for whom they care so brilliantly, do not pay the price of this policy, and that the compromise suggested by my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) is considered.

So many business have contacted me to share their concerns about the detrimental impact of this decision. It will be felt by community pharmacies, by GPs who may be forced to compromise on the care they provide for their patients because they are not eligible for employment allowance, by care providers and by nurseries.

[Mr Adnan Hussain (Blackburn) (Ind)]

The hon. Member has mentioned GPs. Blackburn has one of the highest numbers of patients per GP in the UK. Not enough appointments are available, which places a huge strain on the Royal Blackburn Teaching Hospital, and only last week the hospital was put on red alert. Does the hon. Member agree that increasing national insurance contributions will mean fewer GP appointments in Blackburn, that the hospital—which is already in a dire state—will be in an even worse position, and that the situation will get out of control?

[Aphra Brandreth]

That is an important point. These are the unintended consequences that must be considered, and this is why we really must consider the amendment. The impact of the Bill will be felt throughout the economy: it poses the risk of higher inflation, and it will mean fewer employment opportunities. This decision affects businesses both small and large, it affects our local and national economy, and it affects employees who will not enjoy a pay rise or, worse still, will potentially lose their jobs.

[Daisy Cooper]

Part-time workers, especially in the hospitality sector, will be very badly affected. Before these changes a person could work 14 hours a week without incurring employers’ national insurance contributions, but that has now been reduced to eight hours, which will be very disruptive to weekend shifts in particular. Does the hon. Lady agree that that is an especially negative consequence of the changes?

[Aphra Brandreth]

That is another important point, about yet another group who will be badly impacted by these ill thought-through changes. I urge the Government to think again, and to back these very necessary amendments.

Business Property Relief and Agricultural Property Relief

Aphra Brandreth Excerpts

Thursday 17th October 2024 Westminster Hall

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

It is a pleasure to serve under your chairmanship, Dr Huq. I am grateful to my hon. Friend the Member for Gordon and Buchan (Harriet Cross) for securing this debate on agricultural property relief and business property relief. Like her, I represent a constituency with a large rural community of many farms and agricultural businesses, so I am acutely aware of just how important the relief is for the long-term viability of farming and the wider implications for UK food security.

There is already a recruitment crisis in the sector, which is heavily reliant on families to work in farming into the future. While I would, of course, encourage young people to look into agricultural and land-based courses such as the ones offered at the excellent Reaseheath College in my constituency, it is fair to say that farming is often in the blood, with the skills and knowledge passed down from generation to generation. If the physical means to farm, the land and the property, are not passed down to the next generation, then we risk losing the people, knowledge and skills that we desperately need to keep the sector viable.

I have spoken to farmers, who are clear that changes to agricultural property relief would mean that land would have to be sold to cover the cost of subsequent tax bills. I know that that is the case across the country. According to a large CLA poll, 86% of farmers said that all or part of their land would need to be sold when they passed away, if agricultural property relief was removed. Farmers have already been through a challenging time. Rising costs for energy and fertiliser, inflation, and adverse weather are just some of the issues that farmers have faced in recent years. The Government need to stand by farmers and support them, not restrict and punish them as the removal of APR would do.

Across the House, we rightly say that food security is national security. Farmers need land to produce food. If the Government remove protections that are in place to exempt farm land from inheritance tax, it will be yet another step to putting our food security at greater risk. This is a very real problem that is pertinent to all of us, whether we are farmers or not, because all of us rely on food that is grown to feed our nation. Many farmers across Chester South and Eddisbury provide jobs directly and indirectly—for instance, through food production or hospitality—that rely on local produce. Farmers are also essential for land management and maintaining our environment.

This policy threatens the future of the countryside. I remind the Minister that he stood on a manifesto that committed to not raising taxes on working people. I would respectfully suggest that any change in the current rules and rates of agricultural property relief would be contradictory to that promise. Farmers are working people. They work incredibly hard, often without the recognition they deserve, and they must be supported, not penalised.

Independent Schools: VAT and Business Rates Exemptions

Aphra Brandreth Excerpts

Tuesday 8th October 2024 Westminster Hall

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

I am grateful to my hon. Friend the Member for Bromsgrove (Bradley Thomas) for securing this important debate. Just last week, I held a roundtable with headteachers, school governors and bursars from five independent schools in and around my constituency. I am grateful to Abbey Gate college for hosting. The message from everyone at that meeting was clear: the child is not at the centre of this policy. This is not just about the more than 1,600 pupils attending independent schools in my constituency; it is about the education of every single child, because every pupil who leaves the independent sector as a result of this ill-thought-through policy will mean further pressure put on the state system.

As independent schools try to absorb rising costs to minimise the impact of these taxes, they are faced with difficult choices about how to continue the important charitable work they do, including fully-funded bursary places—as many as one in 14 pupils at one senior school in my constituency. Like others here, I am particularly concerned about the impact on children with special educational needs.

[Dr Neil Hudson (Epping Forest) (Con)]

Hard-working families sacrifice huge amounts to put their children into independent schools. There are more than 2,000 pupils in Epping Forest independent schools. Does my hon. Friend agree that the Labour policy of removing VAT and business rates exemption from independent schools will impact pupils right across the country, including SEND pupils, and will also impact our fantastic local state schools, which will be hit with serious capacity issues when pupils are forced to transfer? This policy is about the politics of envy, rather than the politics of evidence.

[Aphra Brandreth]

Absolutely. The policy will impact all children across our country, and needs to be taken seriously. I have spoken previously about the challenges of SEND provision in my constituency, where families wait months for an EHCP. They are already being let down, so I am deeply concerned about the added pressure of this policy.

Finally, the policy is simply unworkable. The Government are asking staff and bursars to rethink how they operate invoicing and fee processing halfway through an academic year. At the very least, I urge the Government to move the start to the beginning of the next academic year. This is not about embossed stationery, swimming pools and astroturf; it is about children and their education. I urge the Government to think very carefully about this decision and to do as the headteachers at my roundtable on Friday suggested: put children at the centre of this policy.

[Several hon. Members rose—]

Winter Fuel Payment

Aphra Brandreth Excerpts

Tuesday 10th September 2024 Commons Chamber

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

My constituency has a higher proportion of people in receipt of winter fuel payments than most other constituencies. Over 21,000 of them are set to lose that vital support. Constituents have told me that they face a choice between eating and heating. Others have told me that they are concerned for their health during the cold winter months. Their stories are a powerful reminder of the human cost of this decision.

Maggie is 86 and lives in Handbridge in my constituency. She worked as a midwife in the NHS for 40 years, so has a state pension and a small NHS pension. She is not eligible for additional benefits because she was careful with what she earned and saved wisely. Maggie is just above the threshold to be eligible for continued support. She is also a dual cancer survivor, having beaten breast cancer in 2013 and bowel cancer in 2016. Maggie is understandably worried about the consequences of being unable to heat her home this winter. There is also the story of Jackie and John, who live in Audlem. Like many people living in a rural village, they live off grid and do not have access to mains gas. They must rely on heating oil to heat their home.

Pensioners who have paid into the system all their working lives ought to be able to enjoy their retirement with dignity, security and respect. We all know in this House that to govern is to choose. Labour has chosen. It has chosen its union paymasters over our vulnerable pensioner communities. It has let down Maggie, John and Jackie, and many others like them. I urge the Government to listen with compassion and reconsider this political decision.