Class 4 National Insurance Contributions

Debate between Lord Young of Cookham and Lord Harris of Haringey

Wednesday 15th March 2017 Lords Chamber

[Lord Young of Cookham]

I am grateful to my noble friend. I think there is something for all the political parties to learn in terms of setting up policy reviews well in advance of the 2020 general election and involving party members and other people, as appropriate, as they develop their policies, rather than leaving things to the last moment. I therefore take heart from what he says. I am sure that we will all learn from what has happened today.

[Lord Harris of Haringey (Lab)]

My Lords, many of those who are self-employed are also registered for value added tax. I declare an interest as such a person. However, the Government, with effect from 1 April, will introduce a flat rate for limited-cost businesses under the VAT flat rate scheme. This will have an immediate effect for many people in that position of increasing the money they pay to HMRC by a margin of 2% or 3%—in some cases more—of their turnover. Is that consistent with the spirit of the Conservative manifesto?

[Lord Young of Cookham]

I assume those measures have already been approved by both Houses of Parliament, if they are going to come into effect next month.