National Insurance Contributions: Hospitality Sector Debate
Full Debate: Read Full DebateBaroness Kramer
Main Page: Baroness Kramer (Liberal Democrat - Life peer)Department Debates - View all Baroness Kramer's debates with the HM Treasury
(1 week, 1 day ago)
Lords ChamberWell, it was quite a long question. The noble Earl asked me to break it down specifically, so I am answering him. By the spring Budget, that number had reached £16.3 billion, and by July, it had reached £22 billion.
My Lords, the changes to the employers’ NICs threshold now mean that someone working part-time for just eight hours will be subject to employers’ NICs—a huge additional cost for the whole hospitality sector, including the pubs, which the Prime Minister says he champions. Will the Government not only reverse this hike but follow the Lib Dem proposal to halve employers’ NICs on part-time workers, saving the hospitality sector and the jobs of so many people who, because of responsibilities, disabilities or other limitations, absolutely rely on part-time work?
The answer to the noble Baroness’s question is no. Of course, we recognise that the retail and hospitality sector has struggled in recent years. At the Budget, we introduced a number of policies, including freezing the business rates small business multiplier. Together with the small business rates relief, this will exempt over a third of properties from business rates. On national insurance, as I have said before, there are consequences to responsibility, but there would have been greater consequences to irresponsibility, and it is not clear to me how the noble Baroness would fund her policies.