Employer National Insurance Contributions: Police Forces
Debate between Esther McVey and Wendy Morton(1 month, 3 weeks ago)
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Esther McVey
My hon. Friend and neighbouring MP makes a valid point; £3.7 million is the equivalent of about 67 police officers. That is a recurring expense, not a one-off. In places such as Devon and Cornwall, the police will face a £6.3 million tax bill each year. Greater Manchester will be hit with a whopping extra tax bill of £11.9 million each year. Those are just a few examples, and the list goes on.
Wendy Morton (Aldridge-Brownhills) (Con)
The estimated cost for the west midlands is in the region of £12.8 million, which is a huge amount of money. What this Government do not seem to understand is that when the pressure of national insurance is put on to businesses, people cannot squeeze and squeeze profit margins; in the end, that will impact employment, training, and so on. When it comes to the public sector, if we keep squeezing and squeezing, the money has to come from somewhere. Does that mean reduced public services—fewer police officers, as in this case—or will the burden come back on the taxpayer?
Esther McVey
My right hon. Friend might have hit on a point, as the burden could well come back to the taxpayer. Remember that this is tax—it is money that will be going on tax, and a bill that the Government are imposing. However we look at it, it is money that the frontline police service are being deprived of. Let us consider the financial burden that the changes will place on the police force. Employer national insurance contributions represent a significant cost for everyone, but they will hit the police especially hard. For police forces that employ a number of police officers and staff to protect our communities, the cumulative cost of the increase will run well into the tens of millions of pounds. To put that into perspective, take West Yorkshire, where the figure of £11.2 million per year is the equivalent of 220 police officers. That is potentially 220 fewer police officers keeping our communities safe as a direct result of the Government’s Budget.
Let me name a few other places, such as my home area of Merseyside—[Hon. Members: “Hear, hear!”]—Thank you very much indeed. It will be paying an extra tax bill every year of £7 million, which is roughly 130 police officers. Kent will be paying more than £6 million, which is about 100 police officers a year, and Thames Valley police will face an £8 million tax bill every year.