National Insurance: Employer Contributions

Lord Bird Excerpts

Thursday 9th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I have seen the figures from the Nuffield Trust. The Government have provided additional funding for local government, as the noble Lord is aware. I have cited the figure before but will do so again: there is £3.7 billion of additional funding for local government. As I have said several times in this debate, we wanted to do more. Unfortunately, we have to be fiscally responsible, and this Government will continue to be so.

[Lord Bird (CB)]

I must just point out a difference between business and charities, and the help for both. I am an employer of a little social enterprise group. We pay tax. We do not get the breaks or all sorts of other things that charities get. It is hitting us, so we will have to review whether we can employ so many people because of this new employment tax. Can the Minister encourage and include social enterprises—social businesses—in her mix to support them?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord makes a very good point about social enterprise. I am a great champion of social enterprises. They do magnificent work in our country. I set out the basis on which the Government are providing support to SMEs under this regime. Those organisations will benefit from the way we have completely exempted many businesses from having to pay NICs and many others will remain the same as they were before. I hope that will help social enterprises but I am happy to discuss that further with him if he wishes to.