National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Graham Leadbitter and Nusrat Ghani

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

Government Members have talked about difficult choices. Not taking away the winter fuel payment from people, or voting to remove the two-child cap, might also have been difficult choices, but instead they have been easy targets. This Bill adds to those easy targets.

The Bill, presented under the guise of fiscal responsibility, is a thinly veiled austerity measure that will disproportionately burden Scotland and undermine our ability to deliver vital services to our citizens. The increase in employer national insurance contributions is touted by the Government as a necessary step to bolster public finances. However, closer examination reveals the stark reality: the increase will lead to a significant shortfall in Scotland’s public sector funding. We will be left grappling with the fact that the UK Government undervalued the cost of the measure by at least £200 million.

Scottish Government figures, corroborated by independent analysis from reputable institutions such as the Fraser of Allander Institute, paint a grim picture. The national insurance hike will cost Scotland more than £500 million, including a staggering £191 million burden on our already stretched NHS. That figure rises to an alarming £750 million when we factor in indirect employees in sectors such as childcare, GP practices and social care—sectors vital to the fabric of our society.

In Moray West, Nairn and Strathspey, a local firm with a number of care homes across the north of Scotland faces an £800,000 bill. It provides vital services to the community. To give another example, a local dentist has said that the increased cost of employment as a result of the Bill may force them to go private to recoup those costs. Finally, the Bill is a double whammy for GP practices. They face the national insurance hit, but by dint of being designated a public service, are not eligible for employment allowance.

The UK Government’s paltry offer of £300 million in Barnett consequentials is simply not enough to bridge the gap, and it fails to account for Scotland’s proportionally larger public sector, which employs 22% of the workforce, compared with 17% in the UK as a whole. Among other reasons, that is because in Scotland, we already have a publicly owned and managed rail service, and a publicly owned and managed water service. The funding disparity is a clear indication that the UK Government have given scant consideration to the unique needs and circumstances of Scotland. That includes the disregard demonstrated in the winter fuel payment debacle, which exposes a pattern of neglect, regardless of which party occupies the Government Benches. It is exactly this pattern of neglect and lack of understanding of Scotland by successive UK Governments that strengthens the case for Scottish independence, and for our ability to take decisions for ourselves, like every other normal country, on the delivery of public services and taxation that impacts us.

The impact of the Bill goes far beyond mere budgetary concerns. It will have a ripple effect across our economy, harming businesses, stifling growth and ultimately hurting the very workers it purports to protect. The Office for Budget Responsibility has cautioned that the increase will likely lead to lower wages and higher prices; effectively, the burden will be passed on to consumers, and the purchasing power of hard-working families will be eroded. We urge the UK Government to reconsider this damaging Bill, to fully fund the cost of this tax hike to public services in Scotland, and to engage in a meaningful dialogue with the Scottish Government, so that Scotland’s interests are protected.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

We have two remaining Back-Bench contributions. Colleagues who have contributed to the debate should consider making their way back to the Chamber before the wind-ups.

Passenger Railway Services (Public Ownership) Bill

Debate between Graham Leadbitter and Nusrat Ghani

Consideration of Lords amendments
Tuesday 19th November 2024 Commons Chamber

[Catherine Atkinson (Derby North) (Lab)]

rose—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Graham Leadbitter.

[Graham Leadbitter]

The SNP supports the Bill and the Government’s position on the Lords amendments, mainly because the SNP Government in Scotland have already driven forward with public ownership. Sadly, without full and normal powers of independence—those will come in due course—the Bill is the current means to support and underpin those actions by the Scottish Government.

I accept the Secretary of State’s position on Lords amendment 1. To take an example from my constituency, Inverness Airport station was opened relatively recently, and that adds time to the journey between Inverness and Aberdeen. Kintore station in Aberdeenshire was also opened, adding time to the overall length of the journey, but I do not think anybody would dispute that those are good improvements to the railway. They open up the railway to far more people, meaning that more people are using the line, spending money on rail services, and taking cars off the road, even if the overall journey time has not been reduced. Therefore the definition of an improvement in performance is really important, and the amendment gives no indication of how that will be dealt with. For that reason, the SNP does not support it.

We agree that Lords amendment 2 could result in further loss to the public purse and the paying of excessive fees over an extended period. We want that money to come back to the public purse so that it can be reinvested in the railway and increase the usage of our trains. This is not the 1980s. There is a lot of talk about going back to how things were prior to privatisation, but governance and scrutiny are now in a very different place from 40 years ago, and we should acknowledge that. A railway that is publicly owned might bring about a real and sustained age of the train, which we might recall from our youth, with real infrastructure investment like that seen in Scotland. We want to continue to do more of that. That will drag people back on to the railways and move them off the roads, which will contribute to our efforts on climate change and gently improve people’s lives. That is why we support the Government’s position on the Lords amendments.