National Insurance Contributions (Rate Ceilings) Bill (First sitting)

Mark Menzies Excerpts

Tuesday 27th October 2015 Public Bill Committees

[Rebecca Long Bailey]

Q 27 What measures will the Government put in place to provide assurances on this? The Government have imposed the Bill to provide assurance about the ceiling rate on national insurance contributions, but will they do the same to protect the NHS funding element?

Mr Gauke: We do not intend to legislate on that funding, but I point to our record in the last Parliament of increasing expenditure on the NHS in real terms. We are committed to doing the same in this Parliament.

[Mark Menzies (Fylde) (Con)]

Q 28 Following up on that point, is there a clear commitment from the Government to put measures in place to ensure that NHS funding is not reduced as a result of the measures in the Bill?

Mr Gauke: The measures in the Bill will not reduce NHS funding. There is not, in truth, a hard and fast link, because expenditure on the NHS is not confined simply to money coming from the national insurance fund. It is a clear commitment from our party at the last general election, and of course, we have a spending review coming up next month that will set out the details. A Government who are determined to focus support on the NHS, who can deliver a strong economy and who are prepared to make difficult decisions on other aspects of Government expenditure are in a position to provide the support to the NHS that we believe is right.

[Lucy Frazer]

Q 29 The Government have committed to simplifying the tax system. Mr Whiting confirmed that this measure will do that, and that it will bring certainty and stability through lack of change. Do you think that the change will have an impact on any other tax measures?

Mr Gauke: Of course, in the Finance Bill, we also brought in the tax lock in respect of income tax rates and VAT. I hope that that provides a degree of certainty and stability to taxpayers. In particular, in the context of employers’ NICs, the Bill provides an important degree of certainty for employers that they will not be hit by an increase in the rate of the jobs tax, if I may use that term. I hope that that provides certainty and stability. Of course, we are taking other measures as a Government, and we intend to publish a business tax road map by April next year setting out our plans over the course of this Parliament. It is all about creating an environment in which businesses can grow and invest, knowing that they have a Government who want a tax system that is supportive of them.