Spring Statement Affordability Test

Lord Bridges of Headley Excerpts

Wednesday 23rd March 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, the Government have done a significant amount of work in helping households manage their debts, for example, through the breathing space programme and the statutory debt repayment programme. It is important that the Government manage public money well and, where possible, ensure that where money may have been overpaid or mispaid it is paid back.

[Lord Bridges of Headley (Con)]

My Lords, in light of the answers that my noble friend has given, I think we all agree that one of the best ways to help those with low incomes is to give them job security. Can she please explain why the Government are proceeding with this jobs tax—the national insurance rise—on employers, given that the Institute of Directors has said that it

“adds needless complexity to the tax system, encourages self-employment rather than employment, and”—

this is the key point—

“hits hardest the labour-intensive sectors that suffered most from Covid”?

Why are they ploughing ahead with this at the very time when people need job security, not a jobs tax?