National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Jeevun Sandher and Luke Evans

Consideration of Lords amendments
Wednesday 19th March 2025 Commons Chamber

[Dr Jeevun Sandher (Loughborough) (Lab)]

Thank you, Madam Deputy Speaker, for allowing me to rise to speak to Lords amendments 1 to 19. I want to speak about what makes a good tax system and, in particular, optimal tax theory, which is a topic that is as thrilling to me as it is no doubt to the entire Chamber.

A good tax system is defined by neutrality, simplicity and stability, as set out in the Mirrlees review. A tax system designed along those three principles will raise the maximum revenue with the minimum economic impact. Each of the amendments in isolation might seem reasonable, but together they introduce individual exemptions that make our tax system less neutral, less simple and less stable. The amendments would make our tax system worse.

Today, we are discussing raising national insurance contributions from the largest employers to fix our broken public services and invest in our prosperity. Three quarters of that £23 billion of investment is from the richest 2% of businesses, while we are reducing contributions from the 250,000 smallest businesses.

[Dr Luke Evans]

The hon. Member talks about simplicity. If that is the case, why is the Government splitting the NICs? They could have introduced an increase on employees at the same time as the increase on employers, but they have decided not to do that. That would have been a simple measure to raise taxes, without creating this complication. How does that tally with his theory?

Finance Bill

Debate between Jeevun Sandher and Luke Evans

Report stage
Monday 3rd March 2025 Commons Chamber

[Dr Sandher]

I am sure the Government will consider these measures in the round, but more broadly, of course, it is about building many more homes. Some 40% of 18 to 34-year-olds are living with mum and dad, and we are starting to fix that in this Budget, including by providing a 20% increase in the affordable homes programme, which is a stepping stone to building 1.5 million new homes.

[Dr Luke Evans]

I am grateful to my Leicestershire colleague for giving way. He will know that housing targets and housing numbers have gone up in Leicestershire—the figures in my patch are up by 59% and 73% respectively. However, the figures for Leicester city are dropping by 31%. Why is that happening when Leicester has brownfield sites and the best connections? If we need houses everywhere, should we not see them being built in cities as well, rather than just in the countryside?

[Dr Sandher]

The housing formula has rightly been changed to where the need is greatest. In my constituency, for example, planning permission has not been approved to replace derelict factories on brownfield sites with new homes. I have seen too few homes being built and too many things being rejected. I am proud of this Government’s aim to build new homes, and I have full faith in the formula. We need more homes everywhere, including in both of our constituencies.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Jeevun Sandher and Luke Evans

Committee of the whole House & 3rd reading
Tuesday 17th December 2024 Commons Chamber

[Dr Sandher]

The young and the lowest paid work in the smallest businesses. Some analysis, including that from the Institute for Fiscal Studies, does not include these measures, and does not have matched employer-employee datasets. Indeed, Paul Johnson admitted as much when he came before the Treasury Committee.

[Dr Luke Evans]

I am grateful to my fellow Leicestershire MP for giving way. One of the ways that we can judge the market is by looking at vacancies. James Reed, who runs the Reed recruitment agency, has seen a 13% drop in advertisements on the company’s website. He has sounded the alarm that that could be a sign of recession, and that is the implication of what we are voting on today. How will the measure support young people if there are no jobs out there for them?

[Dr Sandher]

I direct the hon. Gentleman to today’s labour market statistics. Employment is still high; unemployment is about the same as it was; and I think inactivity is falling. In the official statistics, the picture looks good.

More broadly, vacancies are not the measure that we want to look at. Instead, we want to look at the number of people in jobs. The revenue that we are raising today will be invested in actions that directly create those good jobs. The warm homes plan will upgrade 300,000 homes, which is tens of thousands of good jobs. The expansion of early years childcare is tens of thousands of good jobs. Businesses need to know that they have the healthy workforce that they need, and more people who are available to work. This is a Budget for growth and for jobs.