Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Lindsay Hoyle Excerpts
Tuesday 3rd December 2024

(2 days, 2 hours ago)

Commons Chamber
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Bill Esterson Portrait Bill Esterson (Sefton Central) (Lab)
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The shadow Chancellor was touring the TV studios this morning to say that the Conservative party did nothing wrong in government. Will my hon. Friend confirm that the reason for the changes to national insurance is precisely to plug the £22 billion gap that the Conservatives caused and to ensure that our constituents can get a hospital or GP appointment?

Lindsay Hoyle Portrait Mr Speaker
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I think that fits with the question, somehow.

James Murray Portrait James Murray
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My hon. Friend is absolutely right. The problem with Conservative Members is that they are all happy to say that they want more funding for the NHS; they are just not prepared to pay for it. What they need to realise is that, in government, we have to take tough decisions to ensure that we can fund public services and fix the public finances.

James Murray Portrait James Murray
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As my hon. Friend will know, many hospices are independent charities and therefore will be able to access the employment allowance, which we have doubled to £10,500 a year, as well as the other wider tax reliefs in the tax system for charities, such as business rates relief and gift aid. Of course, hospices often have statutory obligations with the NHS as well, so I suggest that hospices discuss their contracts with their integrated care boards.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Gareth Davies Portrait Gareth Davies (Grantham and Bourne) (Con)
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Later today, the House will vote on the Government’s £25 billion national insurance tax hike. To avoid any uncertainty when we vote, will the Minister confirm exactly which public sector organisations will be compensated?

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James Murray Portrait James Murray
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I do not think the shadow Minister listened to my response to the previous question, in which I set out very clearly the definition of the public sector for the purposes of national insurance contributions. Look at what the OBR has said: yes, it recognises that we are asking businesses to contribute more and that this will have an impact, but it also says that the employment level will rise from 33.1 million to 34.3 million by 2029, meaning an increase in the employment level over this Parliament.

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.

Daisy Cooper Portrait Daisy Cooper (St Albans) (LD)
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Citizens Advice in St Albans supports some of the most vulnerable people to access public services. It says that the changes to national insurance contributions will

“hit hard because we employ mostly part-time staff and the change to the threshold means we go from paying nothing to the full amount for each staff member. The increased rebate is intended to offset the NIC for small organisations but does not for us because so many of our staff are part-time.”

Will the Chancellor look again at the impact of the national insurance contribution changes on part-time workers?

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Rachel Reeves Portrait Rachel Reeves
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At the Budget in October, we had to fill a £22 billion black hole left by the previous Government. We will never have to repeat a Budget like this one, because we will not have to clear up the mess of the previous Government ever again.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Richard Fuller Portrait Richard Fuller (North Bedfordshire) (Con)
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A cornerstone of sound management is economic certainty, but this Government seem to specialise in creating economic uncertainty; most recently they did so by delaying the date for the critical multi-year spending review. It looks like the Chancellor does not have a grip on either her Cabinet colleagues’ spending plans or her own plans for public sector productivity. Which is it—or is it both?

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Rachel Reeves Portrait Rachel Reeves
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As my hon. Friend will know, in the autumn Budget and phase 1 of the spending review, more than £1 billion was made available to local government, including £600 million for social care. The allocation of that money will be set out in the normal way over the next few weeks, so that local government is funded properly and can deliver the services that it needs to deliver.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Chancellor.

Mel Stride Portrait Mel Stride (Central Devon) (Con)
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What a pleasure it is to appear opposite the right hon. Lady for the first time. I was tempted to ask her how things were going, but I did not want to start out by being unkind. I will instead ask this: when she recently pledged to the CBI that she would not raise taxes again, did she mean it?

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Rachel Reeves Portrait Rachel Reeves
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I happily join my hon. Friend in welcoming Mansfield’s success. We have launched a revamped fair payment code, under which signatories commit to paying their suppliers on time, and the disability finance code for entrepreneurship. That comes on top of reforms announced at the Budget to protect small businesses, such as doubling the employment allowance to £10,500, and our commitment to maintaining the small profits rate and marginal relief at their current rates and thresholds, as well as to freezing the small business multiplier for 2025-26—

Lindsay Hoyle Portrait Mr Speaker
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I call Greg Smith.

Rachel Reeves Portrait Rachel Reeves
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And like my hon. Friend, I look forward to small business Saturday this week—

Lindsay Hoyle Portrait Mr Speaker
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Order. [Interruption.] No, we are going to have a little talk now, because this is not fair; I have to get all these other Members in. I understand that these are set questions, but questions and answers should be short—it works both ways—otherwise I cannot get Members in and it makes my job impossible. Please work with me.

Greg Smith Portrait Greg Smith (Mid Buckinghamshire) (Con)
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The owners of a 380-acre farm in my constituency have worked out that they would have to spend 40 years paying back the money that they would have to borrow because of the changes to agricultural property relief. When will the Chancellor start listening to farmers rather than hiding behind Treasury figures?

Ben Goldsborough Portrait Ben Goldsborough (South Norfolk) (Lab)
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It is vital that we give value for taxpayers’ money, yet Conservative-run Norfolk county council’s doomed Norwich western link road is costing taxpayers £27,000 per day—that is nearly £50 million so far for not an inch of tarmac. Does my hon. Friend agree that the Norfolk Tories give us Liz Truss not just in Whitehall, but in county hall?

Lindsay Hoyle Portrait Mr Speaker
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Minister, you’re running out of road.

Darren Jones Portrait Darren Jones
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The Government will always support local authorities to deliver good value for money road enhancements to support economic growth and improved connectivity. The Norwich western link road is currently the subject of a live planning application, so I am afraid that I cannot comment further on the specifics.