National Insurance Contributions (Rate Ceilings) Bill

Christopher Pincher Excerpts

Tuesday 15th September 2015 Commons Chamber

[Barbara Keeley]

The hon. Lady confuses our not opposing a pledge that we made first on 25 March—it is our pledge, if you like—with a Bill that I am denouncing as a gimmick. It is not just me who is denouncing it as such; a range of commentators have done so as well.

[Christopher Pincher (Tamworth) (Con)]

Will the hon. Lady give way?

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[Barbara Keeley]

I think that the whole range of the tax regime and national insurance is under discussion today.

Given that we hear no assurances that there will not be further increases to insurance premium tax in this Parliament, I want to make it clear again that we support the principle of not raising taxes for working people. That is why we do not oppose the Bill. As I mentioned earlier, before the election campaign started properly, we pledged not to raise national insurance contributions, so this could rightly be described as our idea.

[Christopher Pincher]

The hon. Lady says that the Opposition will not oppose this welcome measure. Does that mean they will vote for it, or simply abstain?

[Barbara Keeley]

As I understand it, there will not be a vote because it will not be opposed, but I cannot speak for other parties in the House.

The Government’s tax lock, of which the Bill forms a part, is nothing more than a gimmick of epic proportions, as I have outlined and demonstrated with many comments from people outside the House. It speaks volumes about the lack of belief that Conservatives have in their own policy commitments. We vote annually on tax legislation, and the Government regularly introduce Bills on NICs alongside Finance Bills—we have already heard about suggested changes to NICs—and, as such, primary legislation, debate and Division are already required in the House.

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[Kit Malthouse]

The hon. Gentleman will have to ask my right hon. Friend the Chancellor of the Exchequer that question next time he appears. I hope that the hon. Gentleman would support me in urging those on the Treasury Bench generally to provide a level of certainty and in many ways to be slower about their decisions.

[Christopher Pincher]

My hon. Friend is generous in giving way. The question of certainty has been raised and eloquently explained by him. Does he agree that, when Members question certainty, they should ask themselves why they ask for referendums on whether they should be part of the United Kingdom, which surely breeds uncertainty?

[Kit Malthouse]

My hon. Friend has made a strong point. During the debate on the referendum concerning our possible divorce as nations, businesses piped up very loudly about what was likely to be a very uncertain horizon for them on the far side of the debate. The majority opted for the status quo, because a bird in the hand was worth God knows what in the bush.

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[Helen Goodman]

The hon. Gentleman knows the way to my heart; he knows that I am half Danish and that I would much prefer the Danish model to the Mexican model.

Hon. Members have been talking about certainty, but the Bill will provide certainty only for the very well off. The Government are not worried about certainty for people on very low incomes, as we shall see in an hour’s time when we discuss the cuts to tax credits.

[Christopher Pincher]

The hon. Lady is a doughty individualist. I recall her calling me up a few months ago, when she was seeking the chairmanship of the Public Accounts Committee—regrettably, she was unsuccessful in that enterprise—and asking me what the PAC Chair should do. One thing she said was, “We must make Parliament more accountable.” Surely by passing this legislation, which would have to be repealed if the Chancellor wanted to make changes, we are making this House and the Chancellor more accountable.

[Helen Goodman]

That is rather a silly remark. If the Chancellor makes decisions on tax, we can question him about them. This Bill is more a non-decision about a non-tax. It does not do what the hon. Gentleman suggests. Conservative Members have reiterated some of their well-known mantras, but have added nothing of substance to the debate. There is no positive agenda in this Bill addressing the needs of the British economy. It is, I am sorry to say, a gimmick.

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[Christopher Pincher (Tamworth) (Con)]

I should like briefly to add my voice in support of this welcome Bill. Having listened to the hon. Member for Worsley and Eccles South (Barbara Keeley), I am pleased that the Opposition do not propose to oppose the Bill. It appears that she has bravely come to the House to abstain in person.

The hon. Lady asked why the Bill is necessary. Were she present, she might like to reflect on this reason: the decision by the new Leader of the Opposition to appoint as his shadow Chancellor the hon. Member for Hayes and Harlington (John McDonnell), a self-confessed Marxist who wants to nationalise the banks, print money and soak almost everybody in the great cause of the proletariat. That sends shivers down the backs of many small and medium-sized enterprises in our country and of international investors. This Bill goes some say to guarding against that uncertainty.

As we have heard, businesses like certainty, even if that certainty generates bad news. It was bad news to hear from the Opposition in the last Parliament that they proposed to freeze energy prices. That increased the cost of capital for investors in our energy infrastructure and made them put off investment decisions.

This Bill, however, is good news. It gives business folk in all our constituencies the certainty that we will not increase taxes. That means that they will make investment decisions and grow their businesses. In my constituency, where unemployment has fallen faster in the past three years than anywhere else in the country, Jaguar Land Rover, BMW, Tamworth Steel Stockholders and Percy Lane Products will create new jobs and more wealth for our country. Business folk in my constituency say that this Bill is a no-brainer, which is one reason why it should commend itself to the Opposition. Let’s do it.