Employer National Insurance Contributions: Small Businesses in Hampshire
Danny Chambers Excerpts(3 days, 22 hours ago)
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Alex Brewer (North East Hampshire) (LD)
I beg to move,
That this House has considered the impact of changes to employer National Insurance contributions on small businesses in Hampshire.
It is an honour to serve with you in the Chair, Mrs Barker. I am equally privileged to be joined by a number of local business owners from North East Hampshire, who are in the Public Gallery.
Soaring energy costs, a business rates system in desperate need of overhaul and, perhaps the most damaging of all, a rise in employer national insurance contributions: individually, any one of those changes would be hard for a small business to absorb, but together they are too much for many small businesses across Hampshire. When a small business’s costs rise, that cost moves on to workers through stagnant wages, to customers through higher prices and to the business owners in lower profits. When the numbers simply cannot add up, the cost also moves on to local communities, through weaker local economies and hollowed out high streets. In Hampshire, where almost 98% of businesses are small businesses, that is felt by an entire county.
Small businesses cannot design their way around these tax changes. A big national chain can negotiate volume discounts, restructure its human resources or draw on a financial buffer; a beauty salon in Church Crookham or a care home in Ewshot cannot. That is why 35% of small firms say that they are planning to close or significantly scale back this year, and why these changes are, in plain terms, a jobs tax.
This matters because these are precisely the employers we need. The Government’s own research has warned that without urgent action, one in six young people could soon be a NEET—somebody not in education, employment or training. Hospitality, retail, personal care and customer service are the sectors facing the steepest rise in labour costs, yet they are the very sectors that traditionally give young people their first, vital experience in the world of work.
Dr Danny Chambers (Winchester) (LD)
A couple of weeks ago, I visited a business called Squeaky Clean run by Sam in Winchester. What was striking about that business was the number of students, young people and sixth-formers it employs, giving them their first job, getting them a CV and teaching them what it is like to work—to turn up on time, to take responsibility—before they go on to university and do other things. Sam told me that the single biggest difficulty she faces in keeping that business going is the rise in national insurance. Does my hon. Friend agree that we should be looking at this as a matter of urgency, not just for those businesses but for young people’s opportunities?
Alex Brewer
I wholeheartedly agree. That is the exact crux of the issue, and it is borne out in the data. The Bank of England decision-maker panel revealed that 46% of firms nationally have cut staff because of these changes, and that 20% have paid lower wages than planned. Nationally, small businesses account for 60% of private sector employment, so when they pull back it is not a footnote to the labour market; it is the labour market.
Nowhere is that clearer than in the hair and beauty sector. Kerry Mather has run KJM Salons in Fleet for 36 years, employing around 20 people including six apprenticeships, training a new generation in a key town centre location. In the past decade, apprenticeships in the UK hair and beauty industry have dropped from nearly 19,000 to 3,000. If we are not careful, soon there will be no apprenticeships left.
Oral Answers to Questions
Danny Chambers Excerpts(5 months, 3 weeks ago)
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Wendy Chamberlain (North East Fife) (LD)
Dr Danny Chambers (Winchester) (LD)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
On business rates, the Government have announced a support package for all businesses worth £4.3 billion over the next three years. We have introduced permanently lower multipliers for eligible retail, hospitality and leisure businesses, including those on the high street. In addition, every pub and live music venue will get 15% off its new bill from April. The Government will also bring forward a high streets strategy later this year.
Dan Tomlinson
Business rates are a devolved matter. The changes that we have announced and the support that we have put in will have consequentials for funding for the Scottish Government. VAT is a broad-based tax that raises a significant amount of revenue for the Treasury. That is important in ensuring that we can manage our public finances and bring in the revenue to be able to get borrowing down, which this Government are doing and previous Governments failed to do. When the Liberal Democrats last had the chance, their choice was to put up VAT rather than cut it.
Dr Chambers
Many businesses in Winchester that I speak to on a regular basis talk about higher energy costs and national insurance rises, and many bring up the increased red tape that has resulted from the Conservatives’ failed Brexit project. Businesses in Winchester say that they want growth, not continued red tape. About two weeks ago, I spoke to one such business, RJM International, located just off the high street. For some reason, the Government refuse to even consider reducing trade barriers to the EU by having a bespoke customs union, but industry wants it and the public are increasingly supportive. Why will the Government not even assess the economic case for a customs union and why are they clinging to a failed ideology at the expense of growing our economy?
Transport in the South-East
Danny Chambers Excerpts(7 months ago)
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Jess Brown-Fuller
I thank the hon. Member for his important intervention; he is right to mention that county councils should be using that money effectively to ensure that people across the constituencies that we represent can get to the places they need to. That is certainly not the case in my constituency, especially in more rural villages and hamlets.
Dr Chambers
It will be. In the rural villages in my constituency such as Colden Common, people rely on the bus service to maintain their independence. If the bus service goes, they cannot get to hospital appointments and they cannot stay in the house they may have lived in for years. Does my hon. Friend agree that there is more than just an economic impact to having good transport; it actually allows people to live a full and independent life without relying on care?
Sir John Hayes (in the Chair)
Dr Chambers is showing how interventions should be done.
Horse and Rider Road Safety
Danny Chambers Excerpts(7 months, 3 weeks ago)
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Dr Danny Chambers (Winchester) (LD)
I apologise for intervening so soon, but it is important to emphasise how significant this debate is. It is not a niche issue. During my career as a horse vet, I have stitched up and euthanised more horses that have been hit by cars than I can remember—they get broken legs and their owners are injured. This is a very regular occurrence for vets. Just this morning in Winchester, in Hambledon on the B3041, a horse was hit by a car and had to be euthanised. This is not a niche problem, nor is it an unusual occurrence, so I fully support the action that my hon. Friend has taken in securing this debate.
Mr Dillon
I thank my hon. Friend for his intervention, and I ask him to pass on my best wishes to his constituent. That shows why the debate is so important, because this is a daily reality on our national highways.
Behind all the figures we talk about, there is a rider, a family and a community affected by trauma and loss. I was contacted by many people from across the country when they heard about this debate. Laura from Essex experienced a devastating accident while riding her horse, Angel. The pair were struck by a car travelling at 53 mph. Laura was extremely fortunate to survive, but tragically Angel, who was just three years old, did not. That incident starkly illustrates the life-threatening dangers that riders face when sharing the road with fast-moving vehicles, and the heartbreaking consequences that can follow.
Oral Answers to Questions
Danny Chambers Excerpts(2 years ago)
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Rachel Reeves
What came to an end in July was 14 years of a Conservative Government who presided over a fall in living standards, the highest tax burden in 70 years, a debt, as a share of our economy, of almost 100%, and a £22 billion black hole in the public finances just this year. What we have not heard from those on the Opposition Front Bench, or indeed from any Conservative Member of Parliament, is an apology for the mess that they have left this country in, which this Government are now picking up.
Dr Danny Chambers (Winchester) (LD)
The Exchequer Secretary to the Treasury (James Murray)
I welcome the hon. Member to his place. Since taking office, the Government have set up the clean energy mission board to enable progress towards the 2030 target. That will accelerate the transition away from fossil fuels to clean, home-grown power, and it will boost Britain’s energy independence and security. The Government will also set up a new publicly owned energy company, Great British Energy, which will save families money by ensuring that electricity bills are no longer exposed to gas price shocks, and a warm homes plan will improve energy efficiency in homes and cut bills.
Dr Chambers
Over the past few weeks, I have been inundated with questions from the people of Winchester about the cuts in the winter fuel allowance, and it seems as though people from all parts of the House are getting similar correspondence. Although I totally understand that there are many wealthy pensioners who do not rely on the winter fuel allowance to heat their homes, a large proportion of pensioners live on or near the poverty line and will be plunged into crisis this winter. Given the huge strength of feeling in all parts of the House, will the Chancellor reconsider her decision? If not, will she at least commit to a vote and a debate in the House about how we best protect our most vulnerable—
Mr Speaker
Order. Sorry, I have to get through the Order Paper. Put in for an Adjournment debate. Minister, I think you got the gist.
Public Spending: Inheritance
Danny Chambers Excerpts(2 years, 1 month ago)
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Rachel Reeves
My hon. Friend is absolutely right. Today’s revelations of a £22 billion in-year overspend come on top of partygate and the handing of contracts to friends and donors to the Conservative party during the pandemic. That dents public trust. I have come to the House today to be open and transparent about the state of the public finances and the action that I will take to sort out this mess.
Dr Danny Chambers (Winchester) (LD)
Congratulations on your recent election, Madam Deputy Speaker. My training as a veterinary surgeon and my work in public health programmes around the world have taught me that it is always more cost-effective to keep people healthy rather than treat them when they get sick. Our hospital in Winchester is a good example, as 20% of people in the A&E department are there because they cannot get a GP appointment. People are there with tooth abscesses because they cannot get dentist appointments, and 30% are there with a mental health crisis and often are already on a waiting list. Does the Chancellor agree that when finances are so stretched, there must not be the temptation to view primary care as a cost to be cut, because investment in dentists, doctors, public health and mental health will make the NHS more efficient, and that will be better for patients and the taxpayer in the long run?
Rachel Reeves
The hon. Gentleman is absolutely right. The spending review will focus on both integration and prevention, because we know that that saves taxpayers’ money and delivers better outcomes for people.