National Insurance: Employer Contributions

Baroness Scott of Needham Market Excerpts

Thursday 9th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I agree with my noble friend. When we start to get some alternatives from the other side of the House, I might be more prepared to listen to their arguments about not putting NICs up.

[Baroness Scott of Needham Market (LD)]

My Lords, I declare an interest as president of the National Association of Local Councils. The Government’s new burdens doctrine has been in place since 2011 and is specifically designed to compensate authorities for this sort of situation. I have reread the guidance today and it specifically mentions town and parish councils, so can the noble Baroness explain why the Government are not following their own guidance in this case? Will she perhaps meet me and representatives of the sector to discuss it?

[Baroness Taylor of Stevenage (Lab)]

I am always very happy to meet colleagues from NALC and have done so several times in the past, as the noble Baroness knows. The issue here is that parish and town councils have not traditionally been funded in the same way. It is for upper tier councils to decide. We have provided additional funding for upper tier councils. The local government funding settlement saw a 3.7% real-terms increase in funding. If upper tier councils choose to provide that funding, they are able to do so, but local councils also have the ability to precept, as she will know.