Health and Social Care Levy Bill

Nigel Evans Excerpts

Committee stage & 3rd reading
Tuesday 14th September 2021 Commons Chamber

[Mr Nigel Evans in the Chair]

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

I should explain that although the Chair of the Committee would normally sit in the Clerk’s chair during a Committee stage, I will remain here in the Speaker’s chair while we still have screens around the table, although I will be carrying out the role not of Deputy Speaker, but as Chairman of the Committee. I should therefore be referred to as the Chair of the Committee rather than as the Deputy Speaker.

Clause 1

Health and social care levy

Question proposed, That the clause stand part of the Bill.

[The Second Deputy Chairman]

With this it will be convenient to discuss the following:

Amendment 8, in clause 2, page 2, line 21, at end insert—

“(1A) HMRC shall publish a forecast of the estimated costs of collecting the health and social care levy for the tax year 2023-24 by 31 March 2022.”

This amendment would require the Government to publish in advance of the levy coming into force its assessment of the extra costs of collecting the levy.

Amendment 7, page 2, line 23, after “cost” insert

“in current or future years”.

Amendment 1, page 2, line 28, leave out from first “as” to end of line 30 and insert

“determined by joint agreement between the Treasury and the devolved administrations of Wales, Scotland and Northern Ireland.”

This amendment would require agreement between the Treasury and the devolved administrations of Wales, Scotland and Northern Ireland as to the shares of the proceeds of the levy that are allocated between health and social care and between England, Wales, Scotland and Northern Ireland.

Amendment 4, page 2, line 29, leave out from “as” to end of line 30 and insert

“determined jointly by the Treasury and the devolved governments of Scotland, Wales and Northern Ireland.”

The amendment would require joint agreement between the Treasury and the governments of Scotland, Wales and Northern Ireland as to how the levy proceeds are to be shared between the four areas and between health care and social care.

Clauses 2 to 7 stand part.

New clause 1—Equality impact analysis—

“(1) The Chancellor of the Exchequer must review the equality impact of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the impact of the Act on—

(a) households at different levels of income,

(b) households at different levels of wealth,

(c) equality between different ages, and

(d) impact between the nations of the UK and regions of England.

(3) In this section ‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause seeks an equality impact assessment of the Bill covering households at different levels of income and wealth; equality between different ages; and the impact between the nations of the UK and regions of England.

New clause 2—Review of economic impact of Act—

“(1) The Chancellor of the Exchequer must review the economic impact in parts of the United Kingdom and regions of England of the changes made by this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions of the Act on—

(a) business investment,

(b) employment,

(c) productivity,

(d) GDP growth, and

(e) poverty.

(3) In this section ‘parts of the United Kingdom’ means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland

and ‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause seeks an economic assessment of the Bill on investment, employment, productivity, growth and poverty in the devolved nations and English regions.

New clause 3—Review of revenue effects of Act—

“(1) The Chancellor of the Exchequer must review the revenue effects of this Act and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) Any review under this section must include an assessment of—

(a) the impact of this Act on revenue derived from—

(i) employment, and

(ii) self-employment; and

(b) the impact of the revenues under this Act from employment and self-employment on the revenues derived from taxation on—

(i) dividends,

(ii) rental income, and

(iii) other forms of personal income.”

This new clause would require the Chancellor to report to the House on the impact of the Act on tax revenue derived from different sources of income.

New clause 4—Review of impact of Act on business—

“(1) The Chancellor of the Exchequer must review the impact of this Act on business and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) Any review under this section must provide a separate analysis of the impact of the Act on the operating costs and profits of—

(a) small and medium sized enterprises,

(b) large enterprises solely based in the UK, and

(c) large multinational enterprises.”

This new clause would require the Chancellor to report to the House on the impact of the Act on the operating costs and profits of different sizes of business enterprises.

New clause 5—Review of equality impact of Act—

“(1) The Chancellor of the Exchequer must review the equality impact of this Act and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) A review under this section must provide a separate analysis of the equality impact of this Act on—

(a) income inequality,

(b) wealth inequality,

(c) geographical inequality,

(d) inequality between people with protected characteristics (within the meaning of the Equality Act 2010), and

(e) socio-economic status.”

This new clause would require the Chancellor to report to the House on the equality impact of the Act.

New clause 6—Report on levy expenditure shares—

“The Chancellor of the Exchequer must report to the House of Commons at the end of each financial year the share of the levy spent on—

(a) health care, and

(b) social care.”

This new clause would require the Chancellor to report annually to the House on the share of the levy spent on health care and on social care.

New clause 7—Report on levy revenue derived from those in the social care sector—

“The Chancellor of the Exchequer must lay a report before the House of Commons within six months of the passing of this Act, and every 12 months thereafter, containing an assessment of the levy revenue derived from those working in the social care sector.”

This new clause would require the Chancellor to report to the House on levy revenue derived from those working in the social care sector.

New clause 10—OTS Assessment of levy and National Insurance increase—

“(1) The Office for Tax Simplification shall publish by 30 September 2022 a report assessing the advantages and disadvantages of introducing the health and social care levy in comparison to the increase in National Insurance.

(2) The report shall include an assessment of the costs of HMRC in collecting the levy and for employers in complying with their obligations in relation to the levy.”

This new clause would require the OTS to publish by September 2022 its assessment of the merits of the levy in comparison with the increase in National Insurance, including costs of compliance with and collection of the levy.

--- Later in debate ---

[Dr Murrison]

rose—

[The Second Deputy Chairman]

Order. Just before Dr Murrison makes a further intervention, can I ask the Minister please to face the microphone? Otherwise, Members will not be able to hear his responses; I have found it difficult to hear him.

[Jesse Norman]

I do apologise, Mr Evans.

--- Later in debate ---

[Mr Deputy Speaker (Mr Nigel Evans)]

I would just like an indication of who will want to make independent speeches by bobbing—thank you.

[James Murray]

As we turn to the Bill’s Committee stage, I will address the new clauses tabled in my name and the name of my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare).

We know that social care desperately needs more funding and the Government claim that their Bill today will help to raise some of that money, but the truth is that there is nothing in this Bill that will guarantee a penny going towards social care. I will return to that point when I address new clause 6, but first I want to look at the core measure that this Bill introduces—the unfair tax rise on working people and their jobs. Our new clause 3 would require the Government to report to the House of Commons on the impact that the Bill will have on tax revenue derived from different sources of income. On the one hand, there is income from employment and self-employment, which the Government have chosen to tax hard. On the other hand, as new clause 3 mentions, there is income from dividends, rental properties and other sources of wealth, which the Government have left untouched. We know that the Government have chosen not to raise taxes for those with large portfolios of stocks and shares, and for landlords renting out multiple properties, but the Bill even lacks any mention of taxes on dividends, despite the Prime Minister saying that they would be taxed more. Perhaps when the Financial Secretary to the Treasury responds, he could explain why the Government have chosen to delay implementing a tax rise in dividends until the next Finance Bill or beyond. Will he give us his word that the increase in tax on dividends will definitely go ahead?