National Insurance Contributions (Reduction in Rates) Bill

Nigel Huddleston Excerpts

2nd reading
Thursday 30th November 2023 Commons Chamber

[The Financial Secretary to the Treasury (Nigel Huddleston)]

On behalf of the Government, I join the hon. Member for Hampstead and Kilburn (Tulip Siddiq) and the whole House in expressing our deepest sympathies to the family and friends of Alistair Darling. I know he had many personal friends in the House who knew him very well indeed. I never had the pleasure of interacting with him here, but what an incredibly calm and dignified gentleman he was. Perhaps that is something we can all reflect on.

Although the debate was somewhat one-sided, as most contributions came from the Government Benches, I thank all hon. Members for their contributions. This important Bill delivers tax cuts and rewards and incentivises work, while growing the economy in a sustainable way. I will respond to many of the points raised.

The hon. Member for Strangford (Jim Shannon) rightly pointed out the importance of looking after the lowest paid and having a fair tax system, which we are delivering on. Over the last 13 years, we have lifted hundreds of thousands of families out of poverty, and we have a progressive tax system where the top 1% of taxpayers pay 28% of all income tax.

My right hon. Friend the Member for Vale of Glamorgan (Alun Cairns) and my hon. Friend the Member for Gloucester (Richard Graham) highlighted the context in which the autumn statement was delivered and recognised the fact that we have faced not one but two global crises: the pandemic and the cost of living challenges. Those challenges are not unique to the United Kingdom and, despite the myths peddled by the Opposition, whoever was in Government would have faced those challenges. We do not remember the Opposition arguing against any of the intervention or support measures at the time—it is as if they have completely forgotten about that. Not recognising the context and the global circumstances speaks volumes about their inability to run the economy. We operate not in a vacuum but in a global system.

My hon. Friend the Member for Gloucester went on to highlight the remarkable progress made over the last 13 years, particularly in areas such as tax thresholds. Under Labour, the income tax threshold was £6,475, whereas it is now £12,570, and the NICs threshold was £5,715, whereas it is now £12,570. That is incredible progress. Together with the increases in the national living wage, that means people on the national living wage working full time are 30% better off in real terms than they would have been under Labour. That is a remarkable achievement and shows, despite the myths the Opposition peddle, that we look after the lowest paid in society. That will always be a priority of this Government.

My hon. Friend showed, yet again, his incredible insight, knowledge and commitment to his constituency by setting out a range of areas in which his constituents have benefited over the last 13 years, including by highlighting the importance of skills and apprenticeships. I could not agree with him more.

[Rehman Chishti]

The Minister is talking about apprenticeships, opportunities and skills, and in Gillingham and Rainham, we have seen over 8,000 apprenticeships. Does he agree that the concept of the Bill and the autumn statement is that if people work hard and do the right thing, they keep more of the money they earn? If they work hard and then retire, they get dignity through the pension triple lock—I know my residents from Darland, who are in the Gallery, very much appreciate that. If it were left to the Labour party, there would be more borrowing, spending and debt. We saw what happened before and we do not want to go back to that.

[Nigel Huddleston]

I could not agree with my hon. Friend more. He has given me the opportunity to leap swathes of my speech, because he has put those important points incredibly well.

My hon. Friend the Member for West Worcestershire (Harriett Baldwin), who is my constituency neighbour and the Chair of the Treasury Committee, highlighted the importance of the autumn statement as a turning point, as articulated by the Chancellor, and the all-important supply-side measures in it that will help spur on business, create employment and generate incremental economic activity. As a result of the spring Budget and the autumn statement, the OBR has said that the economy is likely to be 0.5% larger. When we are talking about an economy of over £2 trillion, that is a huge incremental value to the UK economy.

Unfortunately, the spokesperson for the SNP, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), failed to recognise that we have addressed the cost of living to the tune of £100 billion in support. He also forgot that in the autumn statement we had an increase not only in the living wage but in benefits, aligned with inflation; in pensions; and in the local housing allowance rate, to the 30th percentile. That means 1.6 million families will be better off, gaining an average of £800 in support. It is not true to say that there were no cost of living support measures in the autumn statement.

My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) recognised the considerable impact of those measures and the fact that they make a meaningful difference to his constituents. He raised issues about visas and students, which I am happy to discuss with him further.

As always, my right hon. Friend the Member for Witham (Priti Patel) articulated core Conservative values incredibly well. The autumn statement recognised the importance of spending every penny of taxpayers’ money incredibly carefully and responsibly, as well as ensuring that we are there to support people through the tax system wherever we can. She is right to be passionate about small businesses and entrepreneurs. Small Business Saturday takes place this weekend and I am sure many of us will be out supporting small businesses, not only on Saturday but in the run-up to Christmas and beyond.

The Opposition spokespeople peddled so many myths and untruths, I do not know where to start. [Interruption.] We addressed many of them in previous debates, so I will not hear from them. The way they react speaks volumes.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The Minister did not mean to say “untruths”, did he?

[Nigel Huddleston]

I take back that comment, Madam Deputy Speaker. There were some presumed facts that require challenge, as we saw earlier in the week. At one point, the shadow Chancellor claimed that the forecasts were going to be £40 billion smaller. The shadow spokes- people know full well, because it is stated by the OBR, that economic growth by the end of the forecast period is higher than it was in the spring forecast. [Interruption.] I am sorry if I have to explain that to Opposition Members—if a number is bigger than the previous one, then that means growth and not decline. We could possibly forgive that mistake if it were not made by the people trying to become the Chancellor of the Exchequer. It is extraordinary incompetence—a £55 billion difference is not something we can easily ignore.

As my hon. Friend the Chief Secretary to the Treasury pointed out earlier, we are pleased that the Opposition are supporting the national insurance cuts, but to combine that with their commitments on spending, to the tune of £28 billion, and then claim that there will not be an increase in debt is farcical. It is not true; we know that will happen, and we are seeing the same old Labour. As Margaret Thatcher said:

“The problem with socialism is that you eventually run out of other people's money.”

That was true then, and it is true now.

I thank hon. Members for their contributions. The Bill delivers a tax cut for 29 million working people, and I am pleased that it will be getting support from across the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I join the two Front Benchers in saying how deeply sad it is to hear the news that Alistair Darling has died. He was an incredibly well-respected, thoughtful and kind man who was devoted to public service. I know all Members will want us to send their condolences to his family.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).

Further proceedings on the Bill stood postponed (Order, this day).

National Insurance Contributions (Reduction in Rates) Bill: Money

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the National Insurance Contributions (Reduction in Rates) Bill, it is expedient to authorise the payment out of money provided by Parliament of any increase in the sums payable under any other Act out of money so provided that is attributable to:

(a) reducing the main primary percentage for Class 1 primary national insurance contributions to 10% (and reducing the percentage specified in regulation 131 of the Social Security Contributions Regulations 2001 to 3.85%),

(b) reducing the main Class 4 percentage for Class 4 national insurance contributions to 8% from tax year 2024-25, and

(c) removing the requirement to pay Class 2 national insurance contributions from that tax year.—(Mark Jenkinson.)

Question agreed to.