Finance Bill

Caroline Nokes Excerpts

Report stage
Monday 3rd March 2025 Commons Chamber

[James Wild (North West Norfolk) (Con)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker]

With this it will be convenient to discuss the following:

New clause 2—Energy (oil and gas) profits levy: impact assessment of increase in rate—

“(1) The Chancellor of the Exchequer must, within six months of this Act coming into force, commission and publish an assessment of the expected impact of Sections 15 to 17 of this Act on—

(a) domestic energy production and investment;

(b) the UK’s energy security;

(c) energy prices, and;

(d) the UK economy.

(2) The assessment must examine the impact of provisions in this Act in comparison with what could have been expected had the energy (oil and gas) profits levy remained unchanged.”

This new clause would require the Chancellor to commission and publish an assessment of the expected impact of changes to the energy (oil and gas) profits levy on domestic energy production, the UK’s energy security, energy prices and the UK economy.

New clause 3—Review of impact of tax changes in this Act on households—

“(1) The Chancellor of the Exchequer must, within six months of this Act being passed, publish an assessment of the impact of the changes in this Act on household finances.

(2) The assessment in subsection (1) must consider how households at a range of different income levels are affected by these changes.”

This new clause requires the Chancellor to publish an assessment of the changes in this Act on the finances of households at a range of different income levels

New clause 4—Review of impact of Act on small and medium sized enterprises—

“(1) The Chancellor of the Exchequer must, within six months of the passing of this Act, lay before Parliament a report setting out the impact of the measures contained within this Act on small and medium sized enterprises.

(2) The report must include an assessment of the impact of the Act on the following matters—

(a) the number of people employed across the UK by small and medium enterprises;

(b) the number of small and medium sized enterprises ceasing to trade; and

(c) the number of new small and medium sized enterprises established.”

This new clause would require the Chancellor to conduct an impact assessment of the Act on small and medium enterprises.

New clause 5—Review of the Impact of Tax Changes on Household Finances—

“(1) The Chancellor of the Exchequer must, within six months of this Act being passed, publish an assessment of the impact of the tax changes introduced by this Act on household finances.

(2) The assessment must evaluate how households across different income levels are affected by these changes.”

This new clause requires the Chancellor to assess and publish a report on how the tax changes in this Act impact households at various income levels.

New clause 6—Report on fiscal effects: relief for investment expenditure—

“The Chancellor of the Exchequer must, within six months of the passing of this Act, lay before Parliament a report setting out the impact of the measures contained in clause 16 of this Act on tax revenue.”

This new clause would require the Government to produce a report setting out the fiscal impact of the Bill’s changes to the Energy Profits Levy investment expenditure relief.

New clause 7—Pupils with SEND without an Education Health and Care Plan: review of VAT provisions—

“(1) The Chancellor of the Exchequer must, within six months of the passing of this Act and every six months thereafter, lay before Parliament a review of the impact of the measures contained in sections 47 to 49 of this Act on pupils with special educational needs and disabilities.

(2) The review must consider in particular the impact of those measures on—

(a) children with special needs who do not have an education health and care plan (EHCP); and

(b) the number of children whose families have applied for an EHCP.”

This new clause would require the Government to produce an impact assessment of the effect of the VAT provisions in the Act on pupils who have special educational needs but do not have an Education Health and Care Plan.

New clause 8—Review of sections 63 and 64—

“(1) The Chancellor of the Exchequer must, within six months of the passing of this Act and every six months thereafter, review the impact of the measures contained in sections 63 and 64 of this Act.

(2) Each review must consider the impact of the measures on—

(a) Scotch whisky distilleries,

(b) small spirit distilleries,

(c) wine producers and wholesalers,

(d) the hospitality industry, and

(e) those operating in the night-time economy.

(3) Each review must include an estimate of administrative and operational costs for the preceding 12-month period for each of the sectors listed in subsection (2).

(4) Each review must consider the impact of the measures on the retail price for consumers of products subject to alcohol duty.

(5) Each review must also examine the expected effect of the measures on the domestic wine trade.

(6) A report setting out the findings of each review must be published and laid before both Houses of Parliament.”

This new clause would require the Government to produce an impact assessment of the measures on the Act on distilleries, wine producers and the hospitality industry.

Government amendments 1 to 17.

Amendment 67, page 53, line 30, leave out clause 47.

This amendment removes Clause 47, which removes the VAT exemption for private school fees.

Amendment 68, page 56, line 13, leave out clause 48.

This amendment removes Clause 48, which introduces anti-forestalling provisions.

Amendment 69, page 56, line 13, leave out clause 49.

This amendment removes Clause 49, which sets out the commencement date.

Government amendments 18 to 66.

[James Wild]

I will speak to new clauses 1 to 3, and amendments 67 to 69, tabled in my name. It is 124 days since the Chancellor delivered the first Labour Budget in 14 years—the so-called growth Budget—but it feels like longer. Inflation is up, taxes are up, borrowing is up, unemployment is up and energy bills are up. I could go on, but most tellingly of all, growth is down. The Bank of England has just cut its growth forecast for this year in half, to just 0.75%. Little wonder that business confidence has plummeted, with firms warning of fewer jobs, lower wages and higher prices. Instead of backing risk takers and supporting wealth creators, as the Conservatives do, this Finance Bill and the Budget attack enterprise and deliver lower growth, higher borrowing and higher taxes.

I turn to new clause 1, concerning pensioners. Millions of pensioners were left out in the cold this winter when the Government took away their winter fuel payments. Millions of people in receipt of only the state pension now face paying income tax on it.

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[Dr Sandher]

I could not agree more. Perhaps we should all take a trip to see the great work being done in Reading, because we have to build a lot more homes. My generation is increasingly finding that working hard and getting a good job is no guarantee of owning a home in the end. That is what this Government are fixing with this Budget.

It is not only the young who are not sharing in growth. Growth has gone to capital over labour, and technological change means that machines can do tasks far more cheaply than humans. More payments to capital mean less for workers. The labour share of GDP has fallen by a sixth since deindustrialisation. Today, across the Atlantic, we see the dangers of Bidenomics—

[Madam Deputy Speaker (Caroline Nokes)]

Order. I remind the hon. Member that it is imperative he speaks to the Finance Bill and the amendments, rather than rehashing a Budget speech.

[Dr Sandher]

This Budget is investing in the future, and indeed changing this country. This is a Budget that is moving forward, but I want to cover the bits covered in the Finance Bill. It is a Budget, a Finance Bill, that is investing in labour-intensive sectors such as early years childcare and the warm homes plan.

[Dr Sandher]

I thank the hon. Member for his help and assistance. The aim is not only to improve pensioner incomes. On one side there is the tax change, and on the other side, the triple lock will ensure that the amount going to those pensioners increases by £400 from April. As Members on both sides of the House would agree, the triple lock has helped pensioners immeasurably.

It is right that I now draw my speech to a close. I thank all hon. Members for their help, and I also thank you, Madam Deputy Speaker.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)]

May I draw the attention of the House to my entry in the Register of Members’ Financial Interests? Let me voice my support for my hon. Friend’s new clause, which would require the Government to review the impact of alcohol duty increases on key sectors. Scotch whisky is one of Britain’s greatest industries, accounting for 22% of the whole of Britain’s food and drink exports and supporting tens of thousands of jobs. Yet despite repeated assurances from the Government, the industry continues to face sharply rising duty costs. Since the duty on Scotch and other spirits was—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Member’s intervention is slightly too long. He is on the list to speak in due course, so perhaps he will make his point about the importance of Scotch whisky then.

[Daisy Cooper]

I am grateful to my hon. Friend for raising the plight of Scotch whisky. My husband is an Ayrshire boy who is certainly doing his bit to keep the Scotch whisky industry going.

Notwithstanding that, it would help if the Government did not pursue these particular duties. Near my constituency —it was in it before the boundary changes—is an importer of fine wines. One of its products is port—not the kind of drink that many people sit and glug as they might do with a cheaper form of alcohol. [Hon. Members: “Speak for yourself!”] For most families around the United Kingdom, port is a drink to buy for an occasion—a birthday, Christmas, a wedding or something of that kind. It is not typically the kind of drink that someone would glug—with the exception of a few people in the House—in such volumes as other alcoholic drinks. None the less, that business will be impacted by these measures. They will affect a huge amount of innovation in the industry, which is a prize to our economy.

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[Jim Dickson]

I thank the hon. Member for that intervention. It seems to me that by writing to the Chancellor of the Exchequer and tabling parliamentary questions requesting that information, it would be more than possible for her to gain the data she requires and therefore, no doubt, make her case across the House.

New clause 2 refers to the Government’s changes to the oil and gas profits levy. Those crucial changes, which will see an increase in the rate of the levy to 38% from 35% and will raise in total £6 billion to underpin investment in delivering on our missions—getting the NHS back on its feet and supporting growth across the country—are laudable. I would not want to support any amendments that would put those benefits at risk.

New clause 4, tabled by the hon. Member for St Albans (Daisy Cooper), would require the Chancellor to conduct an impact assessment of the Bill on small and medium-sized enterprises. I am sympathetic to her desire to support small businesses, but I am unpersuaded that her new clause is the best way to do it. All the measures in the Budget had tax information and impact notes for them published with the Budget, and I remind everyone listening that it was a good Budget for small businesses.

As the Federation of Small Businesses said on the day,

“Against a challenging backdrop, today’s Budget shows a clear direction”—

[Madam Deputy Speaker (Caroline Nokes)]

Order. We are debating the Finance Bill and the amendments to it, not the Budget.

[Jim Dickson]

Thank you, Madam Deputy Speaker. I simply intend to illustrate why the changes proposed in the amendments do not help what the Government are attempting to achieve via the Finance Bill. The FSB said that the Budget

“shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates”.

As hon. Members have stated, the Government are supporting SMEs by more than doubling the employment allowance, keeping the small profits rate stable, maintaining the annual investment allowance and freezing the small business rates multiplier. I ask hon. Members not to forget that this is an important piece of legislation underpinning measures announced at the Budget that will help fix the NHS, improve public services, incentivise capital investment and rebuild Britain.

--- Later in debate ---

[Sir Ashley Fox]

I am sure that there are one or two good parts to this Finance Bill, but the hon. Gentleman was elected on a manifesto pledge to increase spending by £11 billion, and that was fully costed, yet this Finance Bill increases spending by £70 billion. I just wonder why he and his hon. Friends did not have the courage to put that before the British people at the election.

Small and medium-sized enterprises and the hard-working entrepreneurs who run them are the backbone of our economy, and they are the victims of this Finance Bill. In constituencies such as Bridgwater, where SMEs are key to local prosperity, the Government have imposed a huge national insurance hike that will make it more expensive to employ people. This rise, which breaks Labour’s manifesto commitment not to raise national insurance, will cost SMEs £732 more per year for every employee earning £20,000. This tax on jobs will stifle growth and lead to higher unemployment. The rise in national insurance is especially damaging to those in the healthcare sector, and the proposed amendments will help to assess the damage that that causes. Last week, representatives from the social care—

[Madam Deputy Speaker (Caroline Nokes)]

Order. In the interests of complete impartiality, I want to make sure that all Members are aware that they have to speak to the amendments as proposed in this Finance Bill, not any other amendments that they might wish had been proposed.

[Sir Ashley Fox]

I am grateful for your guidance, Madam Deputy Speaker.

People in the social care sector in Bridgwater were particularly concerned that the national insurance contributions rise had not been subject to an assessment. Assessing the damage that it and the other tax rises will do is therefore critical to the successful implementation of this Finance Bill.

Crown Estate Bill [Lords]

Caroline Nokes Excerpts

Report stage
Monday 24th February 2025 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Caroline Nokes)]

With this it will be convenient to discuss the following:

New clause 2—Marine Spatial Planning: coordination—

“In relation to any decisions made about marine spatial priorities, the Crown Estate must—

(a) ensure that the decisions are coordinated with the priorities of the Marine Maritime Organisation, and

(b) consult any communities or industries impacted by the plans, including fishing communities.”

Marine plans guide marine use and regulation for sustainable development, balancing the environment, economy, and society. This new clause ensures the Crown Estate collaborates with DEFRA's Marine Spatial Prioritisation through the MMO, using its expertise to inform decisions, preventing conflicts of interest from its new borrowing and investment powers.

New clause 3—Sustainable development: community benefits—

“(1) Before making any investment decision, the Commissioners must assess—

(a) plans for community benefits for local communities, and

(b) plans for community benefits for coastal communities of offshore activities.

(2) In section 3(1) of the Crown Estate Act 1961, at end insert—

‘(1A) The Commissioners must transfer at least 5 per cent of all net profit generated from the Crown Estate’s activities to local communities impacted by those activities.’”

This new clause would require the Commissioners to ensure their activities benefit local communities, including coastal communities, and that 5% of any profits would be transferred to local communities.

New clause 4—Devolution of Crown Estate powers to Wales—

“(1) The Crown Estate Act 1961 is amended as follows.

(2) After section 7 (powers of Minister of Works in Regent’s Park) insert—

‘7A Commissioners’ functions in Wales

(1) The Treasury must set out a scheme to transfer all the existing Welsh functions of the Crown Estate Commissioners (“the Commissioners”) to the Welsh Ministers or a person nominated by Welsh Ministers.

(2) The existing Welsh functions under subsection (1) are the Commissioners’ functions relating to the part of the Crown Estate that, immediately before the transfer date, consists of—

(a) property, rights or interests in land in Wales, and

(b) rights in relation to the Welsh zone.

(3) The Secretary of State must by regulations set a date to implement the scheme under subsection (1) to the transfer of functions to the Welsh Ministers or a person nominated by Welsh Ministers.

(4) A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of either House of Parliament.’”

This new clause would require the Treasury to devolve Welsh functions of the Crown Estate Commissioners to Welsh Ministers or a person nominated by Welsh Ministers.

New clause 5—Limit on the disposal of assets—

“After section 3 of the Crown Estate Act 1961, insert—

‘3A Limit on the disposal of assets

(1) The Commissioners must inform the Treasury if the disposal of assets of the Crown Estate will be of a value totalling 10% or more of the Crown Estate’s total assets in a single year.

(2) The Treasury must approve of any disposal of assets above the threshold in subsection (1) and the Chancellor of the Exchequer must lay a report before Parliament within 28 days of being notified by the Commissioners.’”

This new clause requires the Crown Estate Commissioners to notify and seek HM Treasury approval for the disposal of assets totalling 10% or more of the Crown Estate’s total assets.

New clause 6—Partnership agreement: the Crown Estate and Great British Energy—

“The Chancellor of the Exchequer must lay before Parliament any partnership agreement between the Crown Estate and Great British Energy.”

This new clause requires the Chancellor of the Exchequer to lay before Parliament any partnership agreement between the Crown Estate and Great British Energy.

Amendment 1, clause 1, page 1, line 26, at end insert—

“(3) The Treasury must by regulations limit borrowing to a net debt to asset value ratio of no more than 25 per cent.

(4) A statutory instrument containing regulations under subsection (3) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

This amendment would limit the amount the Commissioners may borrow by regulations.

Amendment 4, page 1, line 26, at end insert—

“(3) The Chancellor of the Exchequer must limit borrowing by the Crown Estate under this section by regulations made by statutory instrument, and these regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(4) The first set of regulations made under subsection (3) must limit borrowing to a net debt to asset value ratio of no more than 25 per cent.”

This amendment would limit the amount the Commissioners may borrow by regulations subject to the affirmative procedure for statutory instruments.

Amendment 2, clause 3, page 2, line 17, at end insert—

“(3B) Any framework document published by the Chancellor of the Exchequer, the Crown Estate and the Commissioners must define ‘sustainable development’ for the purposes of this Act.

(3C) The definition under subsection (3B) must include reference to a climate and nature duty.

(3D) A ‘climate and nature duty’ means a duty to achieve any targets set out under Part 1 of the Climate Change Act 2008 or under sections 1 to 3 of the Environment Act 2021.”

This amendment would ensure that this act’s Framework Agreement must define “sustainable development”, and that the definition must include reference to a climate and nature duty.

Amendment 3, page 2, line 17, at end insert—

“(3B) In pursuit of the objective under subsection 3A, the Commissioners must assess the adequacy of protections against coastal erosion in areas affected by their offshore activities.”

This amendment would require the Commissioners to assess the protections against coastal erosion in areas where landfall is made for offshore projects.

Amendment 5, page 2, line 17, at end insert—

“(3B) In keeping the impact of their activities under review, the Commissioners must have regard to―

(a) the United Kingdom’s Net Zero targets;

(b) regional economic growth; and

(c) ensuring resilience in respect of energy security.”

This new sub-section would require the Crown Estate Commissioners, in reviewing the impact of their activities on the achievement of sustainable development, to have specific regard to the United Kingdom’s Net Zero targets, regional economic growth, and resilience in respect of energy security.

[Llinos Medi]

New clause 1 transfers the management of the Crown Estate in Wales to the Welsh Government within two years of the commencement of the Act. The principle behind it is simple: the people of Wales should control and benefit from their own natural resources. For much of Welsh history, that has not been the case, with resources often exploited for the benefit of others. From copper in Amlwch in Ynys Môn, slate in Gwynedd, steel in Port Talbot and Newport, to the coal across the south-east valleys, the rivers of wealth that flowed from those industries were sucked out of our communities—and those communities have since been ravaged by poverty.

Wales is blessed with natural wealth and brilliant people, yet we are also a nation afflicted with deprivation, following years of extraction. Shocking new figures show that child poverty in Wales is set to reach 34.4% by the end of the decade. That is the legacy of our past, in which wealth generated was not used to benefit the Welsh economy or communities. Today, in 2025, that extractive pattern is being repeated with Wales’s green wealth.

Wales has immense renewable energy potential in our windy seas and long coastlines—we can see that demonstrated in the Morlais project on Ynys Môn—but the seabed, along with thousands of acres of land, is controlled by the Crown Estate. Renewable energy projects using these resources are expanding rapidly and delivering profits. We see that in the value of the Crown Estate, which sky-rocketed from £96 million five years ago to £853 million in 2023. However, all profits generated by the Crown Estate in Wales are transferred to the Treasury. This green wealth, just like the wealth from coal and other minerals in the past, is being sucked out of our nation. Millions of pounds generated on the Welsh Crown Estate is taken out of Wales each year, away from our communities who have borne the brunt of decades of economic decline.

In 2017, Scotland gained control over the Scottish Crown Estate and ensured that all profit was kept in Scotland. Devolution has generated millions for the Scottish public purse, with funds going directly to deprived communities such as those in the highlands. Why do the Scottish people get the benefit from their own water, wind and sea resources, but the people of Wales cannot? It is simply not credible for the Government to continue to say that devolution is too complicated, too costly and too time-consuming. These are all issues that can be addressed with proper planning and resourcing. Scotland’s Crown Estate was devolved in 2017. It is ludicrous to say that the Welsh Crown Estate cannot be devolved in a similar way. In Scotland, interim measures were put in place to ensure a smooth transition from the point of devolution until the implementation of a long-term framework for managing assets. New clause 1 takes a similar pragmatic approach by introducing a transition period. It worked in Scotland; it can work for Wales, too.

Throughout this whole debate, the Government have still not addressed the principle of control, so I would like the Minister to answer directly: do his Government believe that the people of Wales should have democratic control over their own natural resources? The people of Wales certainly believe so. Polling shows that majority support among the Welsh public for the devolution of the Crown Estate is higher than ever. It is also supported by the Welsh Labour Government. A majority of councils in Wales have passed motions in support of devolution; Wrexham council did so just last week, with the support of its Labour group. More councils will follow suit, and we may very likely have all councils in Wales declaring support for devolution in the near future. There is a mandate from right across Welsh society for devolution. Members of Parliament would do well to remember that they are here to serve and represent the people, and that the people of Wales have clearly made their views known on this matter.

In closing, I return to the principle that I outlined at the beginning of my speech. Do Members of this House believe that the people of Wales should, after centuries of exploitation, finally be given the right to control and benefit from their own natural resources? If they believe in that principle, I urge them to join me in the voting Lobby.

National Insurance Contributions

Caroline Nokes Excerpts

Tuesday 4th February 2025 Commons Chamber

[James Murray]

The regulations contain a provision for us, in case it is needed. The expectation is that it will not be. As I mentioned, a Government Actuary’s Department report laid alongside the regulations has forecast that the Treasury grant will not be required in 2025-26. The provision in the regulations is a precautionary measure, and is in line with what has happened in previous years. The Government consider it prudent to continue the practice of previous years, and to make provision for the grant in these regulations. I hope that answers the hon. Gentleman’s question.

The regulations enable an increase in child benefit and the guardian’s allowance in line with prices. Without these regulations, HMRC would be unable to collect national insurance contributions receipts, and child benefit and guardian’s allowance would be frozen at the 2024-25 levels. I hope that colleagues will join me in supporting the regulations.

[Madam Deputy Speaker (Caroline Nokes)]

Before I call the shadow Minister, I inform the Liberal Democrat spokesman that I will call him immediately afterwards.

Bank Resolution (Recapitalisation) Bill [Lords]

Caroline Nokes Excerpts

2nd reading
Wednesday 22nd January 2025 Commons Chamber

[Kit Malthouse]

That is useful information about the Bank’s decision making. However, the Bank still decided to go for insolvency prior to a resolution mechanism. I find it hard to see that, within that 36-hour period, it had not canvassed whether there was a market for the bank. My point remains: if I were an investor or an overseas bank trying to establish and invest significant funds in a UK branch, I would like to understand why the Bank of England makes these decisions, and the criteria and parameters by which it is likely to make a decision either way. Then, of course, the final decision was taken to sell or transfer the bank to HSBC—for a minimal consideration, I think. I really want to understand what value was placed on that bank going to HSBC, as opposed to any of the other banks that might have been bidding for it.

At the heart of this is my worry about competition. When a bank is put in this resolution position, obviously it needs to move to another bank that has significant assets and can fulfil the rightful demands of its depositors to withdraw their funds. That will naturally be a bigger bank, and there is a possibility—although hopefully this will not happen, as we will not use resolution very often—that small, higher-risk challenger banks will find themselves unable to obtain short-term funding from the Bank of England because of their size, and will therefore be gobbled up by the leviathans of the banking system. Over time, there might be a natural move back towards where we were prior to all these challenger banks appearing—to having four or five massive banks that dominate the system in an uncompetitive way.

I am asking the Minister not necessarily to change the legislation, but to consider setting out in a code of conduct what consideration the Bank of England has to give to the competitive landscape when it is resolving a bank. When it transfers one small bank to another small bank as part of a resolution, for example, that wheel might be oiled with a bit of short-term funding, in the interests of maintaining that competitive landscape. The cost of that should not fall on the taxpayer; effectively, it should be a loan for repayment. One of the benefits, if you like, of the 2007-08 crash—one of the silver linings of that cloud—is that we have a much more diverse banking landscape than before. There was recognition that having these huge organisations that crash the entire global economy if they fail was dangerous for the western economy, and that a much more diverse landscape was therefore desirable. The problem with that, obviously, is that there is more inherent risk in those smaller banks. If there is more inherent risk, we are likely to see more resolution, and in time we may end up back where we were.

I support the Bill. I think that resolution is exactly the right way to go, and we should obviate the risk to the taxpayer. There are also negatives to the system, though, so I hope that the Minister, who I am sure will do the job with aplomb, will think carefully about the impact on the world of the Bank of England’s decision making and predictability; about what the Bank can do to provide transparency, whether through a code of conduct or indicators of practice; and about the impact of resolution on competition.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

Crown Estate Bill [Lords]

Caroline Nokes Excerpts

2nd reading
Tuesday 7th January 2025 Commons Chamber

[Matt Rodda (Reading Central) (Lab)]

Thank you, Madam Deputy Speaker, for giving me the opportunity to speak in today’s debate. I wish to speak in favour of the Bill and to make a few brief points, both general ones about wider policy and some in relation to my constituency. I wish to cover the issue of the Crown Estate in central London. I shall then move on to the estate’s property around the coastline, and, finally, I shall come on to some of what I hope will be significant wider benefits of the just transition to a green economy.

First, on modernising buildings in central London, it is often forgotten that our built environment is one of the poorest in terms of energy efficiency across the developed world, including in Europe, and that we do need significant investment. We can obviously see that in the building in which we work. Many buildings in central London date from Victorian and Edwardian times, or the 1960s, when building standards were much lower than they are now. Indeed, there is enormous potential precisely because those building standards were lower—I am talking about issues such as solid walls, cavity walls that are not insulated, and existing single glazing or poor quality older double glazing that could be replaced with newer materials. That shows very precisely the potential benefits in carrying out this work.

It is important to remember, however, that this is in the nature of a one-off capital investment in the short term, which will lead to enormous benefits in the medium to longer term. Therefore, this type of measure, which was outlined so ably by my hon. Friend on the Front Bench, is exactly what is needed by many large landowners to allow them to have access to the capital that they need to carry out works that will improve building efficiency and therefore lead to energy saving. I welcome that, and it is important to remember the context of the built environment in London and across the country.

Secondly, let me move to the issues of the coastline. It is worth noting that the UK is a leader in offshore wind. We need to recognise the benefits of the past few years, particularly the move to the majority of British energy being generated by low carbon sources, particularly offshore wind. However, there is a need for a new, significant additional step up, which requires the mapping of new areas of seabed, new interconnectors, and new grid connectivity at the coast, because the whole of the grid at the moment is designed around a post-war model of large, coal-fired generation inland, so there is significant need for further investment in coastal locations. As my hon. Friend the Member for Exeter (Steve Race) mentioned earlier, some of that is not particularly well mapped, and part of the work that we are seeing allowed today is the ability of the Crown Estates to map much of its property on the coast or on the seabed more accurately, therefore allowing investment as well as supporting and regulating investment as well. I ask the Chief Secretary whether he could outline further detail of aspects of that, in particular the scope for the Bill to allow for and support more investment in interconnectors to other neighbouring countries, as well as more grid connectivity at the coast itself, which can be a bottleneck for renewable energy coming onshore.

Thirdly, I would like to discuss some of the wider benefits of the Bill and ask some further questions. One of the big challenges with the move towards renewable energy is delays in grid connectivity. I have seen that in my own area when I visited a large solar farm next to the M4 motorway, just outside Reading in the seat occupied by my hon. Friend the Member for Earley and Woodley (Yuan Yang). The connection of this large solar array to the grid was delayed by a year because of a lack of capacity among energy companies and wider infrastructure challenges. I hope the Chief Secretary can provide some further detail on how the Bill will allow further acceleration of grid connectivity. I also hope it will add to the wider green energy economy and that the benefits accruing from it could be felt by some smaller onshore schemes.

I certainly ask the Chief Secretary if he could investigate the possibility for it supporting some smaller schemes. For example, in my area there is an innovative scheme to put a low-head hydro generation scheme on the Thames at Caversham. That generates power for several hundred homes. However, there were significant challenges in installing the scheme. Again, grid connectivity, access to capital and other practical issues delayed the project. Up and down the Thames, and other major rivers, there are many examples of sites that could be used for this straightforward, rapidly deployable form of renewable energy. I would appreciate the Minister writing to me if he is unable to comment directly today.

On a related matter, I hope that the Bill will in some way support the wider roll-out of solar on roofs and potentially on canopies over car parks. Both have enormous potential as deployable forms of solar that would have a limited impact on land use, and they may have real benefits through the ease with which they can be accessed. I look forward to getting further detail on those points. I warmly welcome the Bill and thank the Chief Secretary for his words.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Mr Charters]

I was half-expecting my hon. Friend to mention Walleys quarry, although I cannot conceive of how he would link it to the Crown Estate Bill. He will agree that the additional revenue raised by the Bill will benefit his constituents as much as mine.

Over the past decade, the Crown Estate has returned £4.1 billion in net revenue profit to the Treasury. Just imagine how much more it could achieve with the freedom that this Bill provides—not just for the country, but for constituencies such as York Outer. This is what smart, forward-thinking legislation looks like: supporting businesses, securing energy and driving growth. I urge Members on both sides of the House, and particularly Conservative Members, wherever they are, to back this Bill and help us deliver a brighter, greener and more prosperous future.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

[James Wild]

With the leave of the House, it is a pleasure to respond briefly on behalf of His Majesty’s loyal Opposition. [Interruption.] I do not know whether there is a party going on to which I have not been invited, but I am personally very happy to be here to take part in the debate.

This has been a good debate, with more than 10 Members contributing, and not only from coastal areas such as my Norfolk constituency; we have also heard from the hon. Member for Lichfield (Dave Robertson), which underlines the importance of the Crown Estate to all our constituencies.

The hon. Members for Truro and Falmouth (Jayne Kirkham) and for Camborne and Redruth (Perran Moon) spoke about the potential benefits of investment in their constituencies and their part of the world, including the funding of college courses, which are important, as well as investment in energy production.

The hon. Member for Mid and South Pembrokeshire (Henry Tufnell) may want to get some tips from the hon. Member for Great Grimsby and Cleethorpes (Melanie Onn) about how to get on with the Crown Estate, how to get it to do what he actually wants it to do, and how to secure the benefits for his constituency. Perhaps he can have a reset with the Crown Estate.

A number of Members spoke about community benefits, which are very important to securing public support for new infrastructure, be that energy or other issues. Labour Members spoke quite a bit about cutting energy bills. I distinctly remember the pledge they all made during the election campaign to cut energy bills by £300, but energy bills are going up and there is no date for when they will come down. Voters and constituents will remember the pledge and, at the moment, all they can see is their costs going up. The concern is that the pace at which the Energy Secretary wants to drive forward will actually drive up costs for all of our constituents.

I began my remarks by emphasising that the Crown Estate is neither the property of the Government nor part of the sovereign’s private estate. That is key. Its core purpose is to maintain and enhance the value of the estate and the income derived from it. That is why greater transparency is needed about the partnership with GB Energy. The Minister will have heard and, I am sure, noted down all the questions from my opening speech, so I will not repeat them all, but I will repeat this: will he commit to publishing the partnership agreement before we head into the Committee stage?

I am afraid that some of the contributions we have heard have only fuelled my suspicions of the Government’s intention to use the Crown Estate as a vehicle for its energy policy and as a provisional part of the GB Energy body, whatever that may turn out to be. That raises issues about how investments will be determined and the returns that are generated for the taxpayer, as well as the risk surrounding investments, whether crowding in, as hon. Members have referred to, actually happens, whether investment in ports will drive a return, and why commercial providers are not seeking to make similar investments. That conflict and risk was one of the concerns of my right hon. Friend the Member for The Wrekin (Mark Pritchard), who is sadly not in his place. I hope that the Treasury Committee will engage with that point when it examines the nominated new chairman of the Crown Estate commissioners.

That is also why it is important that Parliament has oversight of borrowing limits, rather than that just being in an MOU that can be changed at the Treasury’s whim. That is an important protection that we have in place, and I know that the Minister will also respond to that point in his remarks. Will he also get back to the specific point I raised about disposals and the seabed, and the commitment that Lord Livermore made on Report in the other place about protections and whether an amendment is needed and will be forthcoming?

To conclude, there is wide support for the Bill from across the House, but the short-term interests of the Government should not come at the long-term expense of the Crown Estate and the nation. I look forward to continuing the scrutiny of the Bill in Committee.

[Madam Deputy Speaker]

I call the shadow Minister to wind up.

Christmas Adjournment

Caroline Nokes Excerpts

Thursday 19th December 2024 Commons Chamber

[Bob Blackman]

I congratulate the Lord Commissioner of His Majesty's Treasury, the hon. Member for Redcar (Anna Turley), on finally getting her voice heard in this Chamber. In addition to the three Front-Bench speakers, we have had 18 Back-Bench speakers, which demonstrates the importance of this type of debate, where Members can raise whatever subjects they choose. They have chosen to talk about their constituencies, their particular causes, their charities and their families. This is a very important aspect of our parliamentary work; it demonstrates to the people out there that we represent how important they are to us.

I would like to correct the record. In my earlier speech, I referred to my hon. Friend the Member for Stockton West (Matt Vickers) when I should have referred to my hon. Friend the Member for Brigg and Immingham (Martin Vickers). I want to put that on the record straightaway.

Finally, I would like to wish everyone a very merry Christmas and a happy new year. Although this is a time when Parliament goes into recess, Members of Parliament will not just be having a holiday; they will be working hard on behalf of their constituents, and our constituents will value the work that we do.

[Madam Deputy Speaker (Caroline Nokes)]

I get the opportunity to have the last word. Many Members have mentioned family, and I want to take this opportunity to say merry Christmas to our parliamentary family, making sure we remember our Doorkeepers, the Sergeant at Arms, the Clerks, who keep me in order, and the catering and security people. Godfrey and Margaret got a mention, but I would also like to say—although I may not have been there today—a thank you to Kelly and Jackie in the hairdressers downstairs.

Question put and agreed to.

Resolved,

That this House has considered matters to be raised before the forthcoming adjournment.

Financial Assistance to Ukraine Bill

Caroline Nokes Excerpts

Committee of the whole House
Wednesday 18th December 2024 Commons Chamber

[Caroline Nokes in the Chair]

[The Second Deputy Chairman of Ways and Means (Caroline Nokes)]

I remind Members that in Committee, they should not address the Chair as Madam Deputy Speaker. Please use our names when addressing the Chair. “Madam Chair”, “Chair” and “Madam Chairman” are also acceptable.

Clause 1



Provision of Loans or other Financial Assistance to Ukraine

Question proposed, That the clause stand part of the Bill.

[The Second Deputy Chairman]

With this it will be convenient to consider:

Clause 2 stand part.

New clause 1—Reports on loans or other financial assistance to Ukraine—

“(1) The Secretary of State must—

(a) prepare reports on the operation of assistance provided in accordance with section 1(a),

(b) lay a copy of each report before Parliament.

(2) Each report must provide details of the amount of—

(a) monies provided by the United Kingdom to Ukraine under section 1;

(b) the United Kingdom’s share of the principal loan amount and interest accrued under the scheme; and

(c) receipts of extraordinary profits from the Russian immobilised sovereign assets under the scheme.

(3) Each report must also provide a summary of discussions between His Majesty’s Government and other G7 governments about discussions on any subsequent arrangements that are supplemental to or modify or replace the arrangements referred to in section 1(a), including any discussions concerning—

(a) the range of Russian assets to which the arrangements might apply, and

(b) the use of those assets.

(4) The first report must be laid within the period of 6 months of the passing of this Act.

(5) Each subsequent report must be laid within the period of 6 months beginning with the day on which the previous report was laid.

(6) The duty under subsection (1) ceases to have effect 12 months after the arrangements referred to in section 1(a) or any subsequent arrangements of the kind referred to in section 1(b) cease to operate.”

This new clause establishes an annual reporting requirement relating to the UK share of loans to Ukraine and receipts from the extraordinary profits from the freezing of Russian state assets and to any G7 discussions to extend the arrangements.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Caroline Nokes Excerpts

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

[Caroline Nokes in the Chair]

[The Second Deputy Chairman of Ways and Means (Caroline Nokes)]

I remind Members that in Committee they should not address the Chair as Madam Deputy Speaker. Please use our names when addressing the Chair. “Madam Chair”, “Chair” and “Madam Chairman” are also acceptable.

Clause 1

Rate of secondary Class 1 contributions

[Pippa Heylings (South Cambridgeshire) (LD)]

I beg to move amendment 1, page 1, line 2, at beginning insert—

“(A1) In section 9(1A) of the Social Security Contributions and Benefits Act 1992, before paragraph (a) insert—

“(za) if the employer is a specified employer under subsection (1B), the specified employer secondary percentage;”

(A2) After section 9(1A) of that Act insert—

“(1B) A “specified employer” means—

(a) a person providing a care home service or a domiciliary support service who is regulated under—

(i) Part 1 of the Health and Social Care Act 2008,

(ii) Part 1 of the Regulation and Inspection of Social Care (Wales) Act 2016, or

(iii) Part 5 of the Public Services Reform (Scotland) Act 2010,

(b) a person contracted to provide primary care under the provisions of—

(i) Part 4 of the National Health Service Act 2006,

(ii) Part 4 of the National Health Service (Wales) Act 2006, or

(iii) sections 17J to 17O of the National Health Service (Scotland) Act 1978,

(c) a person contracted to provide general dental services under the provisions of Part 2 of the National Health Service (General Dental Services) Regulations 1992,

(d) a person contracted to provide pharmacy services under the provisions of—

(i) Part 7 of the National Health Service Act 2006, or

(ii) Part 8 of the NHS (Pharmaceutical and Local Pharmaceutical Services) Regulations 2013, or

(e) a charitable provider of health and care, or

(f) a person providing hospice care whether in a hospice or elsewhere.

(1C) For the purposes of this Act, the specified employer secondary percentage is 13.8%.””

This amendment, together with Amendment 2 provides that care providers, NHS GP practices, NHS commissioned dentists, NHS commissioned pharmacists, charitable providers of health and care, and those providing hospice care would continue to pay contributions at current rates.

[The Second Deputy Chairman]

With this it will be convenient to discuss the following:

Amendment 4, page 1, line 2, at beginning insert—

“(A1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

(A2) In section 9(1A) after paragraph (aa) insert—

“(ab) if section 9AA below applies to the earnings, the reduced secondary percentage;”

(A3) After section 9A insert—

“9AA Qualification for reduced secondary percentage

(1) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this section applies to the earnings paid in the tax week, in respect of the employment in question, where the earner is employed—

(a) by a charity registered in the charity register or the Scottish charity register,

(b) by a voluntary organisation within the meaning of regulation 2 of the Housing Benefit Regulations 2006,

(c) to work in a GP practice,

(d) by a university, or

(e) by a college of further education.

(2) For the purposes of section 9(1A)(ab) above, the reduced secondary percentage is 13.8%.””

Amendment 7, page 1, line 2, at beginning insert—

“(A1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

(A2) In section 9(1A) before paragraph (a) insert—

“(za) if subsection (1B) below applies, the healthcare and small charities secondary percentage;”

(A3) After section 9(1A) insert—

“(1B) This section applies where the earner is employed to work—

(a) in any of the following settings—

(i) a GP surgery,

(ii) an optometry or dispensing optician practice,

(iii) a dental surgery,

(iv) a pharmacy,

(v) a residential care setting, or

(b) for a registered charity employing 50 people or fewer.

(1C) For the purposes of subsection (1A)(za) the healthcare and small charities secondary percentage is 13.8%.””

Amendment 13, page 1, line 2, at beginning insert—

“(A1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

(A2) In section 9(1A) before paragraph (a) insert—

‘(za) if sub section (1B) below applies to the earnings, the specified sector secondary percentage;’

(A3) After section 9(1A) insert—

‘(1B) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this subsection applies to the earnings paid in the tax week, in respect of the employment in question, where the earner is employed in any of the following specified sectors—

(a) adult social care,

(b) hospices,

(c) primary care,

(d) nurseries registered in the Early Years Register maintained by the Office of Standards in Education, Children’s Services and Skills, or

(e) a charity registered in the charity register or the Scottish charity register.

(1C) For the purposes of this Act above, the specified sector secondary percentage is 13.8%.’”

This amendment would provide that adult social care, hospice, primary care, nurseries and charities would continue to pay contributions at current rates.

Amendment 19, page 1, line 2, at beginning insert—

“(A1) In section 9(1A) of the Social Security Contributions and Benefits Act 1992, before paragraph (a) insert—

“(za) if the employer is a specified employer under subsection (1B), the specified employer secondary percentage;”

(A2) After section 9(1A) of that Act insert—

“(1B) A “specified employer” means—

(a) a provider of education or childcare to children under five years of age—

(i) registered in England in the early years register maintained by the Office for Standards in Education, Children’s Services and Skills,

(ii) registered in Wales with Care Inspectorate Wales, or

(iii) registered in Scotland with the Scottish Care Inspectorate; or

(b) a university.

(1C) For the purposes of this Act, the specified employer secondary percentage is 13.8%.””

This amendment provides that Early Years Settings and Universities would continue to pay contributions at current rates.

Amendment 20, page 1, line 2, at beginning insert—

“(A1) In section 9(1A) of the Social Security Contributions and Benefits Act 1992, after paragraph (aa) insert—

“(ab) if the employer is a specified employer under subsection (1B), the specified employer secondary percentage;”

(A2) After section 9(1A) of that Act insert—

“(1B) A “specified employer” means—

(a) a registered charity, or

(b) a housing association.

(1C) For the purposes of this Act, the specified employer secondary percentage is 13.8%.””

This amendment provides that charities and housing associations would continue to pay contributions at current rates.

Amendment 23, page 1, line 2, at beginning insert—

“(A1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

(A2) In section 9(1A) after paragraph (aa) insert—

“(ab) if section 9AA below applies to the earnings, the veterans secondary percentage;”

(A3) After section 9A insert—

“9AA Veterans secondary percentage

(1) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this section applies to the earnings paid in the tax week, in respect of the employment in question, where the earner is a veteran.

(2) For the purposes of section 9(1A)(a) above, the veterans secondary percentage is 13.8%.

(3) For the purposes of this section, a “veteran” means a former member of any of His Majesty’s forces.””

This amendment would exempt veterans' salaries from NICs changes.

Amendment 10, page 1, line 3, at end insert—

“(1A) The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.

(1B) In section 9(1A) after paragraph (aa) insert—

“(ab) where the employer is a specified employer under subsection (1B), the specified employer secondary percentage;”

(1C) After section 9(1A) insert—

“(1B) A “specified employer” means—

(a) a person providing a care home service or domiciliary support service regulated under the Health and Personal Social Services (Quality, Improvement and Regulation) (Northern Ireland) Order 2003, or

(b) a person providing primary medical services through contractual arrangements with a Health and Social Services Board,

(c) a person providing general dental services under Part 2 of the General Dental Services (Northern Ireland) Regulations 1993,

(d) a person providing pharmaceutical services under Part 2 of the Pharmaceutical Services Regulations (Northern Ireland) 1997,

(e) a provider of health and care registered as a charity by the Charity Commission for Northern Ireland,

(f) a person providing hospice care whether in a hospice or elsewhere,

(g) a voluntary or community organisation, and

(h) a provider of childcare registered in the Family Support NI Register.

(1C) For the purposes of this Act, the specified employer secondary percentage is 13.8%.”

(1D) After subsection (3) insert—

“(4) The Secretary of State must by regulations define a voluntary or community organisation for the purposes of subsection (1B)(g).””

This amendment aims to provide that in Northern Ireland care homes, domiciliary care providers, GP and dental surgeries, pharmacists, health and care charities, hospice care providers, voluntary or community organisations and childcare providers would remain subject to the current secondary Class 1 contribution rate, not the increased rate proposed in the Bill.

Amendment 16, in clause 1, page 1, line 3, at end insert—

“(1A) The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.

(1B) In section 9(1A) before paragraph (a) insert—

“(za) if sub section (1B) below applies to the earnings, the specified sector secondary percentage;”

(1C) After section 9(1A) insert—

“(1B) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this subsection applies to the earnings paid in the tax week, in respect of the employment in question, where the earner is employed in any of the following specified sectors—

(a) adult social care,

(b) hospices,

(c) primary care,

(d) nurseries registered with Family Support NI, or

(e) a registered charity in Northern Ireland.

(1C) For the purposes of this Act above, the specified sector secondary percentage is 13.8%.””

This amendment would provide that adult social care, hospice, primary care, nurseries and charities in Northern Ireland would continue to pay contributions at current rates.

Clause stand part.

Amendment 2, in clause 2, page 1, line 12, leave out “£96” and insert—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £175, and

(ii) in all other cases, £96.”

This amendment, and Amendment 3, exempts care providers, NHS GP practices, NHS commissioned dentists, NHS commissioned pharmacists, charitable providers of health and care, and those providing hospice care from the changes to the threshold.

Amendment 5, page 1, line 12, leave out “£96” and insert—

“(i) in respect of an earner listed in section 9AA(1) of the Social Security Contributions and Benefits Act 1992, £175, and

(ii) in all other cases, £96.”

Amendment 8, page 1, line 12, leave out “£96” and insert—

“(i) in respect of an earner to whom the healthcare and small charities secondary percentage under section 9(1B) of the Social Security Contributions and Benefits Act 1992 applies, £175, and

(ii) in all other cases, £96.”

Amendment 11, page 1, line 12, leave out “£96” and insert—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £175, and

(ii) in all other cases, £96.”

This amendment provides that the employers listed in Amendment 10 would be subject to the existing secondary threshold for secondary Class 1 contributions, not the lower threshold proposed in the Bill.

Amendment 14, page 1, line 12, leave out “£96” and insert—

“(i) in respect of an earner in a specified sector under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £175, and

(ii) in all other cases, £96.”

This amendment would exempt adult social care, hospice, primary care providers, nurseries and charities from changes to the threshold.

Amendment 17, page 1, line 12, leave out “£96” and insert—

“(i) in respect of an earner in a specified sector under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £175, and

(ii) in all other cases, £96.”

This amendment would exempt adult social care, hospice, primary care providers, nurseries and charities in Northern Ireland from changes to the threshold.

Amendment 24, page 1, line 12, leave out “£96” and insert—

“(i) where the earner is a veteran within the meaning of section 9AA(3) of the Social Security Contributions and Benefits Act 1992, £175, and

(ii) in all other cases, £96.”

See Amendment 23.

Amendment 3, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits Act 1992 or section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £9,100, and

(ii) in all other cases £5,000.””

This amendment is linked to Amendments 1 and 2.

Amendment 6, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) in respect of an earner listed in section 9AA(1) of the Social Security Contributions and Benefits Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) in respect of an earner listed in section 9AA(1) of the Social Security Contributions and Benefits Act 1992, £9,100, and

(ii) in all other cases £5,000.””

Amendment 9, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) in respect of an earner to whom the healthcare and small charities secondary percentage under section 9(1B) of the Social Security Contributions and Benefits Act 1992 applies, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) in respect of an earner to whom the healthcare and small charities secondary percentage under section 9(1B) of the Social Security Contributions and Benefits Act 1992 applies, £9,100, and

(ii) in all other cases £5,000.””

Amendment 12, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £9,100, and

(ii) in all other cases £5,000.””

This amendment makes provision for the monthly and annual thresholds in line with Amendment 11.

Amendment 15, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) in respect of an earner in a specified sector under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) in respect of an earner under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £9,100, and

(ii) in all other cases £5,000.””

This amendment would exempt adult social care, hospice, primary care providers, nurseries and charities from changes to the threshold.

Amendment 18, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) in respect of an earner in a specified sector under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) in respect of an earner under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £9,100, and

(ii) in all other cases £5,000.””

This amendment would exempt adult social care, hospice, primary care providers, nurseries and charities in Northern Ireland from changes to the threshold.

Amendment 25, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) where the earner is a veteran within the meaning of section 9AA(3) of the Social Security Contributions and Benefits Act 1992, £758, and

(ii) in all other cases, £417”, and”

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) where the earner is a veteran within the meaning of section 9AA(3) of the Social Security Contributions and Benefits Act 1992, £9,100, and

(ii) in all other cases £5,000.””

See Amendment 23.

Clause 2 stand part.

Clauses 3 and 4 stand part.

New clause 1—Review of the impact of the Act—

“The Chancellor of the Exchequer must, within a year of this Act being passed, publish an assessment of the impact of the changes introduced by this Act on—

(a) rates of employment,

(b) real wages,

(c) inflation, and

(d) real household disposable income.”

New clause 2—Review of effect on SMEs, hospitality, tourism and seasonal workers—

“(1) The Chancellor of the Exchequer must, within six months of the passing of this Act, lay before Parliament a review of the impact of the measures contained in this Act.

(2) The review must consider in particular—

(a) the impact of those measures on the finances and staffing of small and medium sized businesses;

(b) the impact of those measures on the finances and staffing of small and medium sized businesses in the hospitality and tourism sector;

(c) the impact of those measures on sectors who rely on seasonal workers.

(3) In this section, “small and medium sized businesses” means any business which has an average headcount of staff of less than 250 in the tax year 2023-24.”

This new clause would require the Government to produce an impact assessment of the effect of the Act on SMEs, Hospitality, Tourism and Seasonal workers and on the sectors relying on seasonal workers.

New clause 3—Review of effect of employer NIC threshold—

“(1) The Chancellor of the Exchequer must, within six months of the passing of this Act, lay before Parliament a review of the impact of the measures contained in this Act on part-time workers.

(2) The review must consider in particular the effect of the threshold set by section 2 of this Act on part-time workers—

(a) earning £5,000 - £9,000, or

(b) working under 16 hours per week.”

This new clause would require the Government to produce a report into the impact of the employer NIC threshold on part-time staff, especially those who are lower paid or working less than 16 hours a week.

New clause 4—Employment allowance: review of exception on childcare service providers—

“(1) The Chancellor of the Exchequer must conduct a review of how the exception from the employment allowance under section 2 of the National Insurance Contributions Act 2014 (“the 2014 Act”) affects providers of childcare services.

(2) The review must consider the likely impact on providers of childcare services were section 2 of the 2014 Act to be amended to enable such providers to qualify for the allowance.

(3) A report setting out the findings of the review must be published and laid before both Houses of Parliament within six months of this Act being passed.”

[Pippa Heylings]

These hikes in employer national insurance contributions are not just numbers on a spreadsheet, but will have real and damaging consequences and will strike at the heart of small and medium-sized businesses, which are the backbone of our economy. In my constituency in South Cambridgeshire, we have one of the highest densities of small and medium-sized enterprises, principally in the biotech and life sciences sector, which is a growth area for our economy. It is critical that we get this right, and I have heard from the sector that it is troubled by this legislation.

More worryingly, the consequences will extend to our social and healthcare sectors, which are already under immense strain. GP surgeries and care homes across the UK are at risk of being severely impacted. Those are essential frontline services, which are essential to supporting the NHS and to fulfilling this Government’s mission of moving from treatment to prevention, and from hospital to community.

How can we expect to tackle the backlog in routine operations, and how can we deal with the winter waiting lists at accident and emergency, and with so much pain and anguish, if the primary care providers that form the foundation of our healthcare system are being undermined by this tax increase?

--- Later in debate ---

[Dave Doogan]

The hon. Member is very kind to give way. Twice in the past couple of minutes, he has used the word “ultimately”—“Ultimately we will have to do this, and ultimately we will have to do that.” It is “actually” that he should be saying. You actually have to make sure that there is funding, not ultimately—that can wait for another day. Actually is what will happen as soon as this legislation comes to pass—you will be in an absolute quagmire.

[The Second Deputy Chairman]

Mr Doogan, I will not be in a quagmire.

[Joe Morris]

I thank the hon. Gentleman for his guidance on the correct form of words to use. The reason that I used the term “ultimately” is that it is the fundamental goal of Government to improve the lives of our constituents. That is why I choose to use the form of words that I am using, and why I am focused on the eventual outcome for my constituents. As I said, we did not want to inherit the country in the circumstances that we did. That is fault of the Conservative party, its record and the inheritance it left. We need to bear in mind the context, because that shapes everything and how we go about this.

--- Later in debate ---

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

Listening to Members speaking to the amendments has caused me to reflect on the challenges at the heart of this debate. Does my hon. Friend agree that the amendments that are trying to unpick a holistic approach to fixing the foundations of our public finances entirely miss the point, first of the challenge that this Government face in re-establishing confidence in public finances, and secondly of our approach to long-term investment in public services that are so desperately needed? I believe that all the amendments—

[The Second Deputy Chairman]

Order. The hon. Lady has every opportunity to contribute to this debate if she so wishes. Interventions are getting longer and longer; they must be shorter.

--- Later in debate ---

[Dr Luke Evans]

On a point of order, Ms Nokes. We are debating the National Insurance Contributions (Secondary Class 1 Contributions) Bill, in which I am not sure that Brexit is mentioned. I look to your leadership to decide whether the hon. Gentleman is in order.

[The Second Deputy Chairman]

I thank the hon. Member for his point of order. He will be aware that it is important that Members stay in order. The hon. Member for Milton Keynes North (Chris Curtis) has given some context in his speech, but he might be reminded of the need to stick to national insurance contributions.

[Chris Curtis]

Thank you, Ms Nokes. I am happy to count the number of times I have mentioned national insurance in my speech, but I can guarantee Conservative Members that it has been quite frequent. I will mention it again in the following sentence.

The Budget, including the NICs changes, makes hard decisions to fix the foundations of our economy. We will work tirelessly to bring about the economic growth that the previous Government failed to achieve, so that we do not have to make such hard decisions in the future. It is only by doing so and not engaging in the fantasy economics of the Conservative party that we can break free from the cycle of failure, support businesses of all sizes and create a brighter future for our country.

Finance Bill

Caroline Nokes Excerpts

Committee of the whole House
Wednesday 11th December 2024 Commons Chamber

[Daisy Cooper (St Albans) (LD)]

We Liberal Democrats have long campaigned against what has become, in some places, the scourge of second homes. In too many cases they disrupt or destroy local communities. However, I argue, as does my party, that this is not the best way of doing it. Clauses 50 to 53 raise the stamp duty surcharge on second and subsequent homes. I can see why it is attractive—it is an easy way of raising tax revenue for central Government—but it does not tackle the root problem. I urge the Government to look at the Liberal Democrat proposals, which would do both.

The impact of holiday homes, and short-term lets in particular, has been well rehearsed in the House over the years, but without any action by the previous Conservative Government to tackle it. In my constituency we have seen an absolute explosion of Airbnbs, which have become a magnet for antisocial behaviour and noise. Properties are taken out of the rental market, increasing demand and pushing up rental costs, squeezing many people out of the market and out of our area all together.

The shadow Minister, the hon. Member for North West Norfolk (James Wild), highlighted the risk that this measure may pose of properties being moved from long-term let to short-term let. It may come as some surprise that the previous Conservative Government failed to regulate short-term lets properly. Indeed, when this House was considering the Levelling-up and Regeneration Act 2023, we Liberal Democrats tabled amendments to the Bill to give local authorities the power to regulate the number and location of Airbnbs—a power that is desperately needed. Every single corner of our country should be able to strike the right balance between tourism and homes for local people, where they can build their lives and their community.

We also called for a separate planning class to be created for local authorities, and we want local authorities to have the powers to levy higher council tax for newly bought second homes, with an additional surcharge on overseas residents. That would provide regular income for our hard-pressed councils, not just infrequent money for central Government.

We all know that we have a national housing crisis, but it is also a local housing crisis, because it presents differently in different parts of the country. We urge the Government to look at our proposals to raise regular tax revenue for our hard-pressed councils while tackling this problem at its root. I invite Ministers to speak to the Secretary of State for Housing, Communities and Local Government to ensure that we can give our local authorities the power to regulate the number and location of short-term lets such as Airbnbs, so that our communities are no longer disrupted and destroyed.

[The Second Deputy Chairman of Ways and Means (Caroline Nokes)]

I call the Minister.

[Tulip Siddiq]

I thank all hon. Members for contributing to the debate today, and especially my hon. Friend the Member for North Warwickshire and Bedworth (Rachel Taylor)—it is refreshing to hear someone with genuine knowledge of the housing market speak in the Chamber. I point out gently that the Office for National Statistics’ private rents index shows that renting in England is now 50% more expensive than 14 years ago, and that rents in London reached a record high this February, when we were not in government.

Finance Bill

Caroline Nokes Excerpts

Committee of the whole House
Tuesday 10th December 2024 Commons Chamber

[Dave Doogan]

On a point of order, Madam Chair. The last but one speaker, the hon. Member for Earley and Woodley (Yuan Yang), called me out regarding my perfectly legitimate comment that there was not a single Scottish Labour MP in here. I chose my words carefully, taking part in this debate. I appreciate that there is a Labour Member here who, unless I am very much mistaken, is fulfilling the role of a Parliamentary Private Secretary and therefore will not be taking part in the debate. I ask your guidance, Madam Chair, on whether it is legitimate to call somebody out in a debate and not give them an opportunity to respond. I tried to intervene on the hon. Member for Earley and Woodley to correct the record, but she refused to give way. How can we correct the record to underline the fact that there is not a single Scottish Labour MP in here taking part in this debate on Scotland’s energy?

[The Second Deputy Chairman of Ways and Means (Caroline Nokes)]

The hon. Gentleman will be aware that that is not a matter for the Chair, and therefore I cannot provide advice as to how he can put that on the record. He will know as well as other hon. Members do that it is entirely at the discretion of the individual contributing at that time whether or not they take an intervention, but he has done good work in putting his point on the record via the mechanism of a point of order.

[Adrian Ramsay (Waveney Valley) (Green)]

I would like to echo the arguments made by the hon. Members for Earley and Woodley (Yuan Yang) and for Bath (Wera Hobhouse) . I rise to speak to whether clause 18 and schedule 3 should stand part of the Bill. I argue that both should be omitted, to remove the proposed new tax relief for carbon capture and storage installations as currently drafted. The tax regime for oil and gas is riddled with reliefs, exemptions and loopholes. The windfall tax introduced by the last Government was widely reported, but was slightly less reported was the increased tax relief that went along with it, which allowed oil and gas companies to deduct 91% of their capital investment costs from their tax bill.

We are now many years into an escalating climate crisis, and one that the oil companies have known they were causing since at least 1977. There is absolutely no excuse for public subsidies that incentivise fossil fuel companies to expand their operations. So while I welcome the increase in the rate of the energy profits levy and the reduction of the investment allowance, I want to highlight the fact that, because of other reliefs that still exist, North sea oil and gas companies will still be able to offset 84% of capital expenditure against tax in relation to their expansion of operations.