National Insurance Contributions (Reduction in Rates) Bill

Debate between Dominic Raab and Priti Patel

2nd reading
Thursday 30th November 2023 Commons Chamber

[Priti Patel (Witham) (Con)]

I congratulate my hon. Friend the Member for Gloucester (Richard Graham) on his remarks. He provided a lot of sensible context for this debate and I will address some of his helpful points shortly.

It is very unusual to talk about fiscal matters, or fiscal legislation, to an almost empty Chamber. It is unheard of during my time in Parliament. As my hon. Friend will know, back in 2010, after the financial crisis, when we had to consider the long-term economic plan to build back our economy and to restore fiscal competence, there were many long, heated debates, and rightly so, in which proper scrutiny was given not just to Bills and legislation but to an exposition on the state we were in and how we needed to get ourselves back on to an even keel by growing the economy through Conservative policies.

That brings me to today’s theme. Conservative policies have, over the last decade, helped to restructure the economy, rebuild our country and create jobs and economic growth. They have made us stand tall in the world once again. I remember, in 2010, 2011 and 2012, looking at our financial ratings with a degree of despair. Thank goodness we are no longer in that state, which I think we all welcome.

I welcome this Bill and thank the Treasury and, in particular, my right hon. Friend the Chancellor for bringing it forward. Any measure that brings down the tax burden should be welcomed, because it represents a positive and constructive step in the right direction for our constituents. Our constituents are taxpayers and, ultimately, they want to keep more of the money they earn, and they want to know that the Government are spending their money responsibly.

Reducing the class 1 primary rate from 12% to 10% will put money into people’s pockets from 6 January—the sooner, the better. I commend the Government for bringing forward this vital fiscal measure. I am disappointed that there are not more colleagues here to debate it, but that is just how Parliament is right now.

The £450 benefit to a worker on the average salary will make an important difference to households. My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) put it succinctly when he spoke about what it means for households at this time of year and for domestic budgets and spending.

I am particularly pleased to see the elimination of the class 2 rate and the reduction of the class 4 rate, which will help the self-employed from the start of the new financial year. I never tire of coming to this Chamber to say that I represent a constituency and a county of entrepreneurs. We are self-starters. We are self-made people. We are very proud of the contribution that the people of Essex make to our country. They are net contributors to His Majesty’s Treasury, which is all the more reason why they should get a tax cut.

As a Government who believe in enterprise, economic growth and letting people stand on their own two feet, we should do everything possible to support the self-employed and sole traders. It is hard work being a sole trader and being self-employed. We know about the regulatory burdens and pressure that HMRC puts on sole traders and the self-employed in particular, but they are the backbone and the engine of our economy; they are the lifeblood that creates jobs.

Some 80% of my constituents are employed by small and medium-sized enterprises—that is 20 percentage points higher than the national average—and we want them to continue to thrive and grow, as is right and proper. They are the embodiment of the entrepreneurial spirit that our country needs to create growth. I sometimes feel that we do not always give them the voice they need. It is easy for the big companies that can lobby central Government Departments to get their voices and representations heard. We are here for our constituents as their MPs. Even at business questions this morning, Members spoke about three family-run businesses. That is who we should be supporting.

We have seen a reduction in the number of self-employed people from around 5 million just before the pandemic to just over 4 million this year. That is why I believe we must back them, support them and encourage their growth. We should hold out that ladder of opportunity. Where they need help and support, we should back them as a Government and as a country.

I always come to this House to give a shameless plug for family-run and self-employed businesses in my constituency. It is also important that we buy British and support local firms in our country and in our constituencies. It is important to remember that the self-employed contribute an estimated £278 billion to the economy, and the fiscal and supply measures will make it easier for them to trade.

The ability to do business, to trade and to set up a business are so important. Lower taxes will mean that more people want to give it a go and set up a business. They are the ones taking a risk, so they are the people we should back and support. If we want to be healthy, competitive and drive growth, these are the very people who innovate and invest in new technology and do things that are edgy and somewhat different, while providing vital services to so many of our constituents and being pioneers in certain sectors. That is why keeping taxes down should be at the core of our mission in government.

As we have already aligned the class 1 and class 4 thresholds, to match the tax-free threshold on income tax, we all welcome that the burden of national insurance contributions has been reduced for the self-employed. That is why I am disappointed that there are not more Opposition Members present.

[Dominic Raab (Esher and Walton) (Con)]

My right hon. Friend is making a brilliant speech. I totally agree with her on the NICs paid by employees and the self-employed. In Esher and Walton, the average employee will receive a tax cut of £589 a year, benefiting 50,000 people. She is right that we are here to give a voice to the ambitions and aspirations of local people in our constituencies. Aside from the Labour Benches being totally empty, there is not a single Liberal Democrat Member here. Is it not churlish that, at this particular time, they are not doing more to support people on low and middle incomes?

[Priti Patel]

My right hon. Friend is right about that; his observation is spot-on. He will recall that, as I said in my opening remarks, when we have been in this Chamber to discuss important fiscal and economic measures, it has more often than not been to a full House. It is appalling that when the Government are backing working people and doing the right thing for them by putting more money in their pockets, the Opposition are all hiding. They are failing to recognise something that their constituents will benefit from. The Opposition should be giving a positive voice and supporting it, because it means more jobs and growth in every constituency across the country. As parliamentarians, we should all welcome that.

Oral Answers to Questions

Debate between Dominic Raab and Priti Patel

Tuesday 22nd November 2022 Commons Chamber

[Priti Patel (Witham) (Con)]

I am actually reassured by my right hon. Friend’s comments about the Victims Bill. We need this Bill, and he is aware of my long-standing support for it. With this Bill, the victims of crime cannot be forgotten, including my constituents who have been let down by the courts and the Crown Prosecution Service, which must be held to account when it comes to securing compensation for victims of crime, because the perpetrators are getting off too lightly. These are fundamental areas that the Victims Bill must put forward. May I urge him to give me a commitment today that these areas will not be forgotten?

[Dominic Raab]

My right hon. Friend is absolutely right, and I pay tribute to her for all the work we did together on these issues, and what a stalwart, doughty supporter she has been. The Victims Bill will place the victims code into law. It will increase oversight of how the criminal justice agencies work, both at the police and crime commissioner level and in the national inspections. I mentioned the increase in funding for victims. The increase in the victim surcharge will mean that we have more restorative justice, with offenders paying for the wrongs they have done and victims getting extra compensation.

--- Later in debate ---

[Dominic Raab]

We have relatively recently increased the sentences in relation to driving offences, but if the hon. Lady writes to me again about this harrowing case, I will look at it very carefully and write back to her with the detail.

[Priti Patel (Witham) (Con)]

I have a constituent who is a victim of grooming. She has been sexually abused and assaulted. The trial of the defendant keeps being pushed back, which naturally is causing a great deal of distress. We know that there are delays in the criminal courts, some of which have been exacerbated by industrial action, but can the Justice Secretary tell me how such cases will be prioritised so that justice can be served for the victims and the perpetrators can be locked away with good, strong sentences?

[Dominic Raab]

My right hon. Friend and I worked together closely to increase sentences for the most serious crimes, and she is right about the impact of the Criminal Bar Association’s strike action on the backlog. I can reassure her that under the spending review settlement—something I will be keen to protect as far as I can, given the autumn statement—an extra £447 million will be going into the criminal justice system to help improve waiting times. On top of that, we are recruiting up to 1,000 judges in 2022-23 and we have removed the limit on sitting days in a Crown court for the second year in a row, precisely to get the wheels of justice turning more quickly and to give her constituents the justice they need.