National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill

James Cartlidge Excerpts

3rd reading: House of Commons & Programme motion: House of Commons & Report stage: House of Commons
Monday 10th June 2019 Commons Chamber

[Peter Dowd]

That is a very good point, because that is exactly what the Government do time after time. When they introduce these notions and concepts, they always try to put up a bit of a smokescreen. My hon. Friend is absolutely spot on. Let us call this essentially what it is, which is redundancy. Potentially, it is taking money from people at perhaps one of the most vulnerable times in their working life. Let me repeat: what we want is evidence. This an evidence-free zone—it is as simple as that. The other important point to make is that this is, in effect, a stealth tax. Worryingly, though, there is no coherence to this whatsoever. There is no coherence to this at all. Somebody comes up with an idea and the Government push it through because they want to push it through. There is no evidence for it whatsoever.

[James Cartlidge (South Suffolk) (Con)]

I have enjoyed discussing this Bill with the hon. Gentleman in Committee and on Second Reading. The definition of a stealth tax is surely a tax that is stealthy. In other words, it is not immediately visible, and has to be found in the small print of, for example, the Red Book. This is on the front of a Bill; this is the name of the Bill. I do not think that this can conceivably be described as a stealth tax. The Government have been very open about it, and it is on the front of the Bill.

[Peter Dowd]

I am very pleased that a Conservative Member of Parliament admits that he is putting taxes up. He has admitted that the Government are openly putting up taxes. Okay, even if I accept that it is not a stealth tax—

[James Cartlidge]

rose—

[Peter Dowd]

Just a moment. Even if I accept—[Interruption.] I am happy to give way. Even if I accept, which I do not, that it is not a stealth tax, it is, none the less, about a Tory Government putting taxes up. It is as simple as that. I will give way to the hon. Gentleman.

[James Cartlidge]

The point is not whether it is going up, but whether it is being done in a stealthy fashion. I accept that this is raising revenue. The Minister will not cut it, because that will take revenue from elsewhere. The question is whether it is stealthy. It is on the front of the Bill; it is the name of the Bill. It is not remotely stealthy. Stealth taxes are so named when we pull the wool over people’s eyes, but this is very open and transparent, and, yes, it will increase revenue for the Treasury.

[Peter Dowd]

The hon. Gentleman can point that out to me as much as he wants. I admitted, or acknowledged—call it what you will—that even if it is not a stealth tax, it is a Tory Government putting up taxes. [Interruption.] We agree on that. [Interruption.] I am happy to have that conversation with him outside the Chamber, if need be, so that I do not get into trouble with either you, Mr Deputy Speaker, or those Members on the packed Benches. The bottom line is that what we have here is quite clearly and unambiguously an admission from the Tories that they are putting taxes up. That is what it comes down to. [Interruption.] My hon. Friend the Member for Coventry South (Mr Cunningham) says from a sedentary position that they do so in a sneaky way.

Ministers have claimed many times that they have a desire to simplify tax. They talk all the time about simplification of tax. They have an Office for Tax Simplification. They institutionalised it. Has there been much simplification? Not as far as I am concerned. There certainly has not been any simplification of national insurance contributions. Therefore, despite the many claims from Ministers that they have a desire to simplify the tax and national insurance treatment of termination awards, the Chartered Institute of Taxation and other tax experts have raised concerns about the lack of information in the Bill as to how this new class 1A charge will be collected. In their rush to try to get more money into the Exchequer, they have not even decided or worked out how they are going to collect it.