National Insurance Contributions (Secondary Class 1 Contributions) Bill

Baroness Neville-Rolfe Excerpts

3rd reading
Tuesday 4th March 2025 Lords Chamber

[Lord Leigh of Hurley (Con)]

I want to raise an objection to the earlier remarks of the noble Lord, Lord Eatwell, which accused us of making amendments to spray public funding around. We made a number of suggestions as to how government could raise revenue in other ways, and government does flex itself, as we have seen in the increasing defence expenditure and reduction in overseas aid, which is a perfectly reasonable thing to do outside of a Budget.

When the chief executive of a hospice says publicly that, as a result of this legislation, people may die in greater pain and agony than would otherwise be the case, I think it is perfectly reasonable for this to be drawn to your Lordships’ attention and for amendments to be discussed.

[Baroness Neville-Rolfe (Con)]

My Lords, I am concluding for the Opposition on this amendment. We are content with the amendment, which we see as a technical, tidying-up amendment.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, the amendment tabled by the noble and learned Lord, Lord Wallace, seeks to make a minor adjustment to the Bill to more accurately define care workers in Scotland. While the amendment does not change the fundamental principles or objectives of the Bill, it enhances the clarity and precision of the text. I am therefore happy to accept this amendment.

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[Lord Londesborough (CB)]

I too have some thanks to give. I thank all noble Lords from across the House who voted for my exemption amendment on the 45% reduction in Clause 2’s secondary threshold for all organisations employing fewer than 25 staff. I particularly thank my supporters, the noble Baronesses, Lady Neville-Rolfe and Lady Kramer. I was delighted to have the support of both the Conservatives and the Liberal Democrats and, indeed, the majority of Cross-Benchers who were able to vote at that late hour.

I also thank the Public Bill Office for helping to draft an amendment that turned out to require five consequential amendments, the staff of the Whips’ Offices, and the Minister for at least listening and for his patient approach. I appreciate that he has a lot on his plate, but I hope that he and the Treasury appreciate that my amendment sits right behind their number one priority, which is to generate sustainable economic growth. That is why I tabled the amendment and I trust it will be given the full consideration and scrutiny it merits.

[Baroness Neville-Rolfe (Con)]

My Lords, in concluding for the Opposition, I thank the many Peers on my Benches who have made valuable contributions during the Bill’s passage. I cannot thank them all today as the list is too long but I thank particularly my noble friend Lord Altrincham—my comrade in arms—and our opposition research team.

I also thank noble Lords from across the House, because this has been a cross-party effort, reflecting the widespread damage this Bill will cause. I particularly thank the noble Lord, Lord Londesborough, for his amendments to protect small business, the noble Baroness, Lady Barker, for her amendments on health and social care, and the noble Baroness, Lady Kramer, for her support across the board, including for the amendment calling for a review of the impact of the Bill.

I will say a couple of things. We have consistently heard that this is a job tax, plain and simple. It is the most important economic measure the Government have introduced so far, and it will have wide-reaching damaging impacts across the whole economy. It is being brought in on a tight timescale, creating a cliff edge on 6 April with no staggering for those who may be hurt. It has not been accompanied by an adequate impact note. It has led to businesses losing confidence in the Government, and that, I believe, is very bad for growth, of which I am very supportive. Despite the Minister’s protests, Peers from all Benches have agreed that the short document the Government call an impact note is an affront to the House, and that the Government have failed to provide sufficient sectoral information to allow for the effective scrutiny we try to bring. That is why we must have the review of the impact on affected sectors.

Despite the importance of these measures, the Government have made no effort to engage constructively. This House therefore voted to exempt small charities, transport providers for children with special educational needs and disabilities, early years providers and, as I have already said, small businesses and health and social care providers that provide public services in the private sector.

Of course we understand that taxes should be simple, as the noble Lord, Lord Eatwell, has explained, but when the Government fail to recognise the egregious impact this Bill will have on real people, we believe that some rethinking is necessary. Some of our changes would be modest in cost terms, but I know they would earn the thanks of many right across society.

I end by encouraging the noble Lord to use all his charms to persuade the Chancellor to think again.

[Lord Livermore (Lab)]

My Lords, I once again thank all noble Lords for their efforts on this Bill. I beg to move.