Employer National Insurance Contributions

Debate between Kevin Bonavia and Melanie Ward

Wednesday 4th December 2024 Commons Chamber

[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.