Employer National Insurance Contributions
Kevin Bonavia Excerpts(2 weeks ago)
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Kevin Bonavia (Stevenage) (Lab)
After inheriting the ruins of 14 years of Conservative failure, this Government have had to make tough decisions to balance the books.
Kevin Bonavia
And I will keep it coming until the right hon. Gentleman gets the message.
After 14 years of working people footing the Bill, this Government are choosing to spread the load in as fair a way as possible. In the spirit of building an economy driven by collaboration between productive workers and thriving businesses, a balance has to be struck. While we are asking employers to contribute more, this does of course come with protections for small businesses. While employer national insurance contributions will increase by 1.2%, this Government are choosing to protect the smallest businesses by increasing the employment allowance to £10,500 and expanding this to all eligible employers.
Let us therefore stop the politically expedient outrage and check the real-life impact. Changes to the employment allowance mean that the Office for Budget Responsibility expects that 250,000 employers will gain and an additional 820,000 will see no change. We have also committed to provide support for public sector employers for additional employer cost. This also means that, unlike the previous Government, who gave us the highest tax burden since the second world war, Labour are able not to ask for a penny more out of workers’ pay packets. While we must listen to the genuine concerns from businesses, which, like the rest of society, are feeling the brunt of 14 years of Tory austerity and decline, I am in no doubt that these decisions are the right and necessary ones that will fix the foundations of our economy and unlock the funding to rebuild our public services.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
My hon. Friend is talking about fixing the foundations and that point was also made by the now absent hon. Member for Angus and Perthshire Glens (Dave Doogan) earlier in the debate. Today was Budget day in the Scottish Parliament, where of course the Scottish Government had a record amount of funding to spend. I just want to share with the House what was said about that Budget by the Fraser of Allander Institute. It said—
Madam Deputy Speaker (Caroline Nokes)
Order. We simply cannot have interventions of that length. Only nine Members are going to get to speak this evening and the hon. Lady is on the list, but those who choose to make long interventions might find themselves removed from it.
Kevin Bonavia
I totally agree with my hon. Friend that this Government are supporting people across the whole country, including Scotland today, and I really hope the Scottish Government use the money they have been given well.
Returning to the Opposition motion, were they also opposed to our country being left a £22 billion black hole by the last Government? Where they also opposed to the disastrous Liz Truss mini-Budget, which included £45 billion of unfunded tax cuts, and which shocked the markets, crashed the pound and skyrocketed mortgage rates? Were they also opposed to the last Government’s spring Budget, which included myriad damaging unfunded promises in an attempt to flash the cash at the public ahead of an election? If they do now oppose all the above, they must agree with me that we have to restore economic stability by funding our pledges. That means finding money, and if it is not through this measure, would they tax working people or make another black hole? We have to face down the reality of these choices for what they are.
It is overwhelmingly clear that the shadow Cabinet, who were exiled into opposition this summer, have not learned a single thing. They have made £6.7 billion in unfunded spending commitments in just four weeks. At least we can be grateful that they are not in the position to do more damage at the moment. Turning to what the funds raised from this measure will do, are the Opposition opposed to investing an extra £25.6 billion to fix the foundations of our NHS or cutting waiting times with 40,000 extra elective appointments a week?
Joe Robertson (Isle of Wight East) (Con)
The hon. Gentleman talks about the NHS. What does he have to say to pharmacies, which report that his Government’s measures will cost pharmacists £50 million, even after taking into account the employment allowance?
Kevin Bonavia
I say to all Members of this House that people have to see these measures in the round. This Budget will support all our businesses in the long run. Are the Opposition now opposed to protecting the triple lock, increasing carer’s allowance, freezing fuel duty, paying workers properly and supporting local councils? Are they opposed to boosting education funding by £6.7 billion and hiring 6,500 extra teachers, who our children desperately need to secure their future? If they are opposed to those things, they are not listening to the British public who, in my constituency of Stevenage and in hundreds of other seats, voted at the last election for a change from years of Conservative chaos.
Change with Labour will bring a decade of national renewal to fix our public services from the ground up. Businesses can only have the confidence to invest in the UK if we bring stability to the economy, put money into the pockets of customers and develop thriving public services for the workforce that will in turn improve productivity for businesses. Business confidence was demonstrated by the record-breaking £63 billion in investment secured for the UK economy at the international investment summit. Under Labour, Britain is open for business.
Today, the Conservative Opposition are asking us to pretend that we can grow our economy and rebuild our public services without saying how it would all be paid for. This Tory Opposition, with their motion today, show that they have learned nothing from 14 years of Tory fantasy economics. The shadow Chancellor brought up fantasy economics, and his party delivered that for 14 years in government. Today we have a Labour Government. The country voted against fantasy economics in July, and today I will vote against it too.
Oral Answers to Questions
Kevin Bonavia Excerpts(1 month, 2 weeks ago)
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Darren Jones
My hon. Friend rightly points out that this country faces a choice: investment or decline. As we saw at the general election, it chose investment, and that is what the Government will deliver.
Kevin Bonavia (Stevenage) (Lab)
Sonia Kumar (Dudley) (Lab)
The Economic Secretary to the Treasury (Tulip Siddiq)
Increasing economic productivity is a key mission in the Labour Government’s growth agenda. After 14 years of weak productivity, depressed living standards and unfunded spending commitments, we are adamant about bringing our country into an upward trajectory, using the national wealth fund and the significant planning reforms that we are bringing together to ensure a decade of national renewal for our country.
Kevin Bonavia
Across the UK, the hospitality sector generates £93 billion per year. In my constituency, there are many examples of local entrepreneurs, including on the old town’s High Street and in our neighbourhood centres, who provide an excellent service for residents and visitors alike. What can my hon. Friend do to help our hospitality services grow in Stevenage and across the UK?
Tulip Siddiq
I am fully aware of the assets of my hon. Friend’s constituency, including the neighbourhood centres that he mentions, and the surrounding villages, which host amazing music festivals. I recognise the contribution of the hospitality sector in Stevenage to the UK economy, and I know he is a great champion of the borough business club. I am confident that our Government’s growth mission will ensure that hospitality businesses in Stevenage continue to grow. The Government look forward to working with organisations such as UKHospitality to facilitate that.