Oral Answers to Questions

Liz Kendall Excerpts

Monday 18th March 2024 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[Liz Kendall (Leicester West) (Lab)]

In the Budget, the Chancellor said that he wants to end national insurance contributions because the

“double taxation of work is unfair.”—[Official Report, 6 March 2024; Vol. 746, c. 851.]

People’s NICs records help to determine their entitlement to the state pension, so if national insurance is scrapped how will they know what pension they will get?

[Mel Stride]

I am not surprised that the hon. Lady brings that up, because I am well aware of the position that her party has taken on the announcements that we have made. She will be clear in her own mind that the Chancellor has not guaranteed that we will reduce at one stroke national insurance contributions; it is an aspiration that has been spoken about as occurring over a number of years, if not Parliaments, so the problems that she is conjuring up to frighten pensioners are nothing short of political scaremongering.

[Liz Kendall]

The Secretary of State can bluster and deny all he likes, but the Prime Minister told The Sunday Times:

“We want to end this double taxation on work”.

It is there in black and white, so let me try again. How will people’s pension entitlement be determined if NICs are scrapped, and if the Government are going to merge NICs with income tax what will that mean for pensioners’ tax bills? Is the truth not that their unfunded £46 billion plan to scrap NICs is yet more chaos from the Conservatives, and Britain’s pensioners deserve so much better?

[Mel Stride]

The hon. Lady quoted from The Sunday Times, and I scribbled it down:

“We want to end this double taxation”.

Of course we do, but that is not the same as a near-term pledge; it is a longer-term aspiration—[Interruption.] We have been quite upfront, quite unlike—[Interruption.] If she would care to hear me out, it is quite unlike the £28 billion firm commitment that her party made, and subsequently U-turned on, which was nothing short of fiscally reckless, and would have led to increases in interest rates, inflation, unemployment, and so on.