Employer National Insurance Contributions

Caroline Nokes Excerpts

Wednesday 4th December 2024 Commons Chamber

[Madam Deputy Speaker]

Order. The Chief Secretary might like to reflect that when he says, “What are yours?”, it means, “What are mine?” They are not my choices. Can he please be careful not to use “you” and “yours”?

[Darren Jones]

Thank you, Madam Deputy Speaker. To be very clear and to correct the record, the Conservative party should tell the country what its choices are. I am all ears.

The Labour party inherited a mess and we, as a responsible party of government, have needed to take measures to fix the public finances, fund the national health service and other public services, and deliver economic stability. We have been determined to take those decisions while protecting working people, which was our manifesto commitment. That is why the Budget made no changes to income tax, the rate of VAT or the amount of national insurance working people will pay. As a result of our Budget, people will not see a penny more in tax on their payslips. Yet keeping those promises while getting the country back on track meant tough decisions elsewhere in the tax system—choices and decisions that we are willing to take.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. There will be a five-minute time limit from the outset—obviously not including the Liberal Democrat spokesperson. I call Daisy Cooper.

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[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

My hon. Friend is talking about fixing the foundations and that point was also made by the now absent hon. Member for Angus and Perthshire Glens (Dave Doogan) earlier in the debate. Today was Budget day in the Scottish Parliament, where of course the Scottish Government had a record amount of funding to spend. I just want to share with the House what was said about that Budget by the Fraser of Allander Institute. It said—

[Madam Deputy Speaker (Caroline Nokes)]

Order. We simply cannot have interventions of that length. Only nine Members are going to get to speak this evening and the hon. Lady is on the list, but those who choose to make long interventions might find themselves removed from it.

[Kevin Bonavia]

I totally agree with my hon. Friend that this Government are supporting people across the whole country, including Scotland today, and I really hope the Scottish Government use the money they have been given well.

Returning to the Opposition motion, were they also opposed to our country being left a £22 billion black hole by the last Government? Where they also opposed to the disastrous Liz Truss mini-Budget, which included £45 billion of unfunded tax cuts, and which shocked the markets, crashed the pound and skyrocketed mortgage rates? Were they also opposed to the last Government’s spring Budget, which included myriad damaging unfunded promises in an attempt to flash the cash at the public ahead of an election? If they do now oppose all the above, they must agree with me that we have to restore economic stability by funding our pledges. That means finding money, and if it is not through this measure, would they tax working people or make another black hole? We have to face down the reality of these choices for what they are.

It is overwhelmingly clear that the shadow Cabinet, who were exiled into opposition this summer, have not learned a single thing. They have made £6.7 billion in unfunded spending commitments in just four weeks. At least we can be grateful that they are not in the position to do more damage at the moment. Turning to what the funds raised from this measure will do, are the Opposition opposed to investing an extra £25.6 billion to fix the foundations of our NHS or cutting waiting times with 40,000 extra elective appointments a week?

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. There will now be a four-minute time limit. A reminder about interventions: Members are using up the time that others could have had.

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[Edward Morello (West Dorset) (LD)]

The hon. Gentleman rightly points out the need to invest in the NHS. Does he recognise that imposing NICs on primary healthcare providers such as my constituency’s Weldmar Hospicecare, which provides vital end of life care to residents and must raise £26,000 a day to fund its service, will result—

[Madam Deputy Speaker]

Order. That was perfectly long enough.

[Jake Richards]

That point has been made over and over again in interventions, and the Health Secretary has been very clear that funding allocations for primary care services and other services will be set out in due course. As a result of this Labour Government’s actions, there will be more money available than there would have been.

This debate shows the Opposition to be mere opportunists who are incapable, or perhaps unwilling, to face up to the difficult decisions that we face as a country. We have seen the path that takes us down, and we cannot do that again.

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[Julia Lopez]

No, I am afraid there is simply not enough time.

Finally, I want to mention a small private school in my constituency. Its pupils are some of the most vulnerable and deprived in our capital, as it is an alternative provision school. First, the Labour Government hit it with VAT. Now they are going to hit it with NICs and wage increases. Either it absorbs that cost or it passes it on to the local council. Those are four businesses from Harold Hill to Hornchurch providing critical services to my constituents, employing young people and giving working families opportunities. Now they are going to be hit by tens of thousands in extra costs, and that is before I even talk about the GPs, the pharmacists, the dentists, the charities, the shops, the restaurants and the pubs. It is for them that I am going to wholeheartedly—

[Madam Deputy Speaker (Caroline Nokes)]

Order. That brings us to the Front-Bench contributions.