All 2 Jim Shannon contributions to the Health and Social Care Levy Act 2021

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Wed 8th Sep 2021
Health and Social Care Levy
Commons Chamber

1st reading & 1st readingWays and Means Resolution ()
Tue 14th Sep 2021
Health and Social Care Levy Bill
Commons Chamber

2nd readingSecond reading & 2nd reading

Health and Social Care Levy Debate

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Department: HM Treasury

Health and Social Care Levy

Jim Shannon Excerpts
1st reading
Wednesday 8th September 2021

(2 years, 8 months ago)

Commons Chamber
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Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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We are all aware that the NHS is the pride of the UK, and we are similarly aware that there is a grim possibility that it may become our biggest loss. I am therefore very much focused on health issues. That loss would be because of historical underfunding as well as the unseen pressures that covid has placed on every facet of the NHS, from dentists, physios and surgeons to waiting lists, assessments and operations.

I will not take the path of some others and seek to score political points because that is not what I am about. I am will think of the constituent who, at the age of 53, came to my office almost immobilised having waited four years for a hip replacement. I will think of the parents desperate to get respite for their disabled children. I will think of the mums watching their daughters—and increasingly their sons—who are killing themselves with eating disorders and cannot get the help that is needed. I do not want to score points, but I do want to get it right.

There are rightful questions about who will bear the brunt of what is undoubtedly a necessary evil. My real fear is that for small businesses who in recent years have taken on the burden of paying statutory sick pay to staff, increased wages under the minimum wage and are paying more to ship their products to Northern Ireland due to the disgraceful Northern Ireland protocol, what seems like a small increase may put them off hiring that new staff member. That is a real concern, and when that is weighed along with fact that big businesses with their expensive accountants can find a loophole to prevent them from paying what they can well afford, it seems that the middle class will again be the ones feeling the squeeze. I therefore share the concerns of my right hon. Friend the Member for East Antrim (Sammy Wilson), who highlighted the unfair nature of this blanket tax.

Whatever method is used to raise money—I need this to be heard clearly—this money cannot be diverted by way of the Barnett consequential to any other Department, as moneys have been in the past. We need to reform our health and social care or we will lose the NHS, but, in Northern Ireland, the funding make-up means that funding cannot be ring-fenced. As my right hon. Friend said:

“Northern Ireland will benefit by about £420 million per year by this increase in National Insurance but there is no indication that the Executive”—

the Northern Ireland Executive—

“will be required to spend it on the purpose for which it was raised since the Government cannot ringfence money”.

Before the debate, I spoke to the Minister for Care to seek assurances, and she will seek those assurances from the Treasury. Since the relevant Minister is not here at the moment, I put these questions to the acting Ministers on the Front Bench. Can that money for Northern Ireland be ring-fenced? Will all future moneys that come to Northern Ireland for this purpose also be ring-fenced? That is what we need to know. We cannot have a system whereby—as has happened on multiple occasions—this salvation funding for the NHS is used for putting, for instance, an Irish language or Ulster Scots sign up on a street. How do we ensure that the money goes on reform and is not used by others to promote their political goals and aspirations?

We undoubtedly need to take the bull by the horns and swallow the pill for the increase. However, we will never be forgiven if in five years’ time we are still in the same position. What guarantees do we have that the sacrifice of every single employed person, every single pensioner and every single business owner will bring about the necessary change and not be lost in the ether of politics at Stormont? Many are willing to make the sacrifice for care—not anything else—and we need binding legislation in place for us to believe that any guarantee given will not be waylaid by political machinations.

The future of the NHS is worth the change to legislation. Let us get it done. I want to see something happen from which we can all benefit across the whole United Kingdom, and I need that to happen for us in Northern Ireland.

Health and Social Care Levy Bill Debate

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Department: HM Treasury

Health and Social Care Levy Bill

Jim Shannon Excerpts
Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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Thank you for calling me to speak, Mr Deputy Speaker. Like many others, I am put in a difficult position by the Bill. I believe that there must be big changes to create an influx into the NHS for the reform that we are desperate for, but I have seen too many broken families who have lost a loved one who was waiting for mental health support, who could have been saved if their cancer diagnosis had come in time, or who are awaiting support to make their child’s educational journey positive, not a hellish nightmare without the support that they need.

I am torn, because I see the need for reform. I see mentally and physically exhausted staff at the end of themselves, trying to meet their obligations in the NHS, and desperate trusts putting up advertisements for off-duty staff to come in because of dangerously understaffed wards. All those things tell me that there is need for reform, but I do not and cannot support this method. I cannot support the middle class and the small businessman bearing the brunt of the cost again. I cannot wrap my mind around the concept that someone earning £15,000 a year will have the same amount taken away in national insurance contributions as someone on £150,000 a year.

I make it clear that I am not a socialist; there is nothing wrong with being a socialist, but I am a capitalist. I believe that the system that we have is important. I understand that big business must have big results to support the big workforce, but I believe that when raising money, the easiest way is not always best.

We must ensure that we do not continue to squeeze the middle class. The Government have not been able to assure me or my colleagues that their proposal is the best way or that it is better than a graduated system whereby those on huge wages paid an extra amount that they would not overly notice, instead of families on the brink having to sacrifice and struggle each day.

I speak to constituents who are earning too much for support but not enough to live comfortably. They are the group who will be most affected, but the burden could and should be more judiciously shared. For those middle-class families, for the small businesswoman employing 11 staff and for the pensioner who has been taxed for their entire life, I do not think that the proposed method is the best one, and I do not feel that I can support it.

From the refusal to lift the child benefit threshold above £50,000, which is preventing families from taking a pay rise for fear of losing the monthly child benefit payment that pays for necessities for their children, to the situation facing pensioners who thought that they had set aside enough to last, only to deal with an increase in the cost of living along with a raid of the pension in their savings account, life is uncomfortable for those who have worked hard and who believed that they would retire in peace. Those people are all willing to make a contribution to the NHS, but is it fair that they should feel the brunt alone? I feel that that is what is happening; it is not right and I cannot support it.

I have one more small comment to make, which is about the £420 million that will be allocated to Northern Ireland through the Barnett formula. Whatever process the moneys come through, I would like to see them ring-fenced, because as Departments bid for funding, there is every possibility that the money will be deflected from doing good to simply being abused. In Northern Ireland, it could be used for the machinations of other parties, while teenagers suffer from eating disorders and while child and adolescent mental health services teams cannot prevent children from hurting or abusing themselves. I have watched as the Northern Ireland Office has been strong-armed into funding endless legacy investigations to the tune of Sinn Féin, which wishes to rewrite history.

I have not heard that the Bill will prevent the misappropriation of central funding, so I cannot support it. That goes against the grain for me, because I believe in the principle of reform. I would welcome reform if a different method of raising funding were put forward, but I simply cannot agree with the Government’s method. I ask them, even at this late stage, to revisit the methodology and allow us all to support our NHS, as people want to, without further squeezing the middle class. That cannot happen.