National Insurance Contributions (Secondary Class 1 Contributions) Bill

Pippa Heylings Excerpts

Committee of the whole House & 3rd reading
Tuesday 17th December 2024 Commons Chamber

[Pippa Heylings (South Cambridgeshire) (LD)]

I beg to move amendment 1, page 1, line 2, at beginning insert—

“(A1) In section 9(1A) of the Social Security Contributions and Benefits Act 1992, before paragraph (a) insert—

“(za) if the employer is a specified employer under subsection (1B), the specified employer secondary percentage;”

(A2) After section 9(1A) of that Act insert—

“(1B) A “specified employer” means—

(a) a person providing a care home service or a domiciliary support service who is regulated under—

(i) Part 1 of the Health and Social Care Act 2008,

(ii) Part 1 of the Regulation and Inspection of Social Care (Wales) Act 2016, or

(iii) Part 5 of the Public Services Reform (Scotland) Act 2010,

(b) a person contracted to provide primary care under the provisions of—

(i) Part 4 of the National Health Service Act 2006,

(ii) Part 4 of the National Health Service (Wales) Act 2006, or

(iii) sections 17J to 17O of the National Health Service (Scotland) Act 1978,

(c) a person contracted to provide general dental services under the provisions of Part 2 of the National Health Service (General Dental Services) Regulations 1992,

(d) a person contracted to provide pharmacy services under the provisions of—

(i) Part 7 of the National Health Service Act 2006, or

(ii) Part 8 of the NHS (Pharmaceutical and Local Pharmaceutical Services) Regulations 2013, or

(e) a charitable provider of health and care, or

(f) a person providing hospice care whether in a hospice or elsewhere.

(1C) For the purposes of this Act, the specified employer secondary percentage is 13.8%.””

This amendment, together with Amendment 2 provides that care providers, NHS GP practices, NHS commissioned dentists, NHS commissioned pharmacists, charitable providers of health and care, and those providing hospice care would continue to pay contributions at current rates.

[The Second Deputy Chairman]

With this it will be convenient to discuss the following:

Amendment 4, page 1, line 2, at beginning insert—

“(A1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

(A2) In section 9(1A) after paragraph (aa) insert—

“(ab) if section 9AA below applies to the earnings, the reduced secondary percentage;”

(A3) After section 9A insert—

“9AA Qualification for reduced secondary percentage

(1) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this section applies to the earnings paid in the tax week, in respect of the employment in question, where the earner is employed—

(a) by a charity registered in the charity register or the Scottish charity register,

(b) by a voluntary organisation within the meaning of regulation 2 of the Housing Benefit Regulations 2006,

(c) to work in a GP practice,

(d) by a university, or

(e) by a college of further education.

(2) For the purposes of section 9(1A)(ab) above, the reduced secondary percentage is 13.8%.””

Amendment 7, page 1, line 2, at beginning insert—

“(A1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

(A2) In section 9(1A) before paragraph (a) insert—

“(za) if subsection (1B) below applies, the healthcare and small charities secondary percentage;”

(A3) After section 9(1A) insert—

“(1B) This section applies where the earner is employed to work—

(a) in any of the following settings—

(i) a GP surgery,

(ii) an optometry or dispensing optician practice,

(iii) a dental surgery,

(iv) a pharmacy,

(v) a residential care setting, or

(b) for a registered charity employing 50 people or fewer.

(1C) For the purposes of subsection (1A)(za) the healthcare and small charities secondary percentage is 13.8%.””

Amendment 13, page 1, line 2, at beginning insert—

“(A1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

(A2) In section 9(1A) before paragraph (a) insert—

‘(za) if sub section (1B) below applies to the earnings, the specified sector secondary percentage;’

(A3) After section 9(1A) insert—

‘(1B) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this subsection applies to the earnings paid in the tax week, in respect of the employment in question, where the earner is employed in any of the following specified sectors—

(a) adult social care,

(b) hospices,

(c) primary care,

(d) nurseries registered in the Early Years Register maintained by the Office of Standards in Education, Children’s Services and Skills, or

(e) a charity registered in the charity register or the Scottish charity register.

(1C) For the purposes of this Act above, the specified sector secondary percentage is 13.8%.’”

This amendment would provide that adult social care, hospice, primary care, nurseries and charities would continue to pay contributions at current rates.

Amendment 19, page 1, line 2, at beginning insert—

“(A1) In section 9(1A) of the Social Security Contributions and Benefits Act 1992, before paragraph (a) insert—

“(za) if the employer is a specified employer under subsection (1B), the specified employer secondary percentage;”

(A2) After section 9(1A) of that Act insert—

“(1B) A “specified employer” means—

(a) a provider of education or childcare to children under five years of age—

(i) registered in England in the early years register maintained by the Office for Standards in Education, Children’s Services and Skills,

(ii) registered in Wales with Care Inspectorate Wales, or

(iii) registered in Scotland with the Scottish Care Inspectorate; or

(b) a university.

(1C) For the purposes of this Act, the specified employer secondary percentage is 13.8%.””

This amendment provides that Early Years Settings and Universities would continue to pay contributions at current rates.

Amendment 20, page 1, line 2, at beginning insert—

“(A1) In section 9(1A) of the Social Security Contributions and Benefits Act 1992, after paragraph (aa) insert—

“(ab) if the employer is a specified employer under subsection (1B), the specified employer secondary percentage;”

(A2) After section 9(1A) of that Act insert—

“(1B) A “specified employer” means—

(a) a registered charity, or

(b) a housing association.

(1C) For the purposes of this Act, the specified employer secondary percentage is 13.8%.””

This amendment provides that charities and housing associations would continue to pay contributions at current rates.

Amendment 23, page 1, line 2, at beginning insert—

“(A1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

(A2) In section 9(1A) after paragraph (aa) insert—

“(ab) if section 9AA below applies to the earnings, the veterans secondary percentage;”

(A3) After section 9A insert—

“9AA Veterans secondary percentage

(1) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this section applies to the earnings paid in the tax week, in respect of the employment in question, where the earner is a veteran.

(2) For the purposes of section 9(1A)(a) above, the veterans secondary percentage is 13.8%.

(3) For the purposes of this section, a “veteran” means a former member of any of His Majesty’s forces.””

This amendment would exempt veterans' salaries from NICs changes.

Amendment 10, page 1, line 3, at end insert—

“(1A) The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.

(1B) In section 9(1A) after paragraph (aa) insert—

“(ab) where the employer is a specified employer under subsection (1B), the specified employer secondary percentage;”

(1C) After section 9(1A) insert—

“(1B) A “specified employer” means—

(a) a person providing a care home service or domiciliary support service regulated under the Health and Personal Social Services (Quality, Improvement and Regulation) (Northern Ireland) Order 2003, or

(b) a person providing primary medical services through contractual arrangements with a Health and Social Services Board,

(c) a person providing general dental services under Part 2 of the General Dental Services (Northern Ireland) Regulations 1993,

(d) a person providing pharmaceutical services under Part 2 of the Pharmaceutical Services Regulations (Northern Ireland) 1997,

(e) a provider of health and care registered as a charity by the Charity Commission for Northern Ireland,

(f) a person providing hospice care whether in a hospice or elsewhere,

(g) a voluntary or community organisation, and

(h) a provider of childcare registered in the Family Support NI Register.

(1C) For the purposes of this Act, the specified employer secondary percentage is 13.8%.”

(1D) After subsection (3) insert—

“(4) The Secretary of State must by regulations define a voluntary or community organisation for the purposes of subsection (1B)(g).””

This amendment aims to provide that in Northern Ireland care homes, domiciliary care providers, GP and dental surgeries, pharmacists, health and care charities, hospice care providers, voluntary or community organisations and childcare providers would remain subject to the current secondary Class 1 contribution rate, not the increased rate proposed in the Bill.

Amendment 16, in clause 1, page 1, line 3, at end insert—

“(1A) The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.

(1B) In section 9(1A) before paragraph (a) insert—

“(za) if sub section (1B) below applies to the earnings, the specified sector secondary percentage;”

(1C) After section 9(1A) insert—

“(1B) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this subsection applies to the earnings paid in the tax week, in respect of the employment in question, where the earner is employed in any of the following specified sectors—

(a) adult social care,

(b) hospices,

(c) primary care,

(d) nurseries registered with Family Support NI, or

(e) a registered charity in Northern Ireland.

(1C) For the purposes of this Act above, the specified sector secondary percentage is 13.8%.””

This amendment would provide that adult social care, hospice, primary care, nurseries and charities in Northern Ireland would continue to pay contributions at current rates.

Clause stand part.

Amendment 2, in clause 2, page 1, line 12, leave out “£96” and insert—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £175, and

(ii) in all other cases, £96.”

This amendment, and Amendment 3, exempts care providers, NHS GP practices, NHS commissioned dentists, NHS commissioned pharmacists, charitable providers of health and care, and those providing hospice care from the changes to the threshold.

Amendment 5, page 1, line 12, leave out “£96” and insert—

“(i) in respect of an earner listed in section 9AA(1) of the Social Security Contributions and Benefits Act 1992, £175, and

(ii) in all other cases, £96.”

Amendment 8, page 1, line 12, leave out “£96” and insert—

“(i) in respect of an earner to whom the healthcare and small charities secondary percentage under section 9(1B) of the Social Security Contributions and Benefits Act 1992 applies, £175, and

(ii) in all other cases, £96.”

Amendment 11, page 1, line 12, leave out “£96” and insert—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £175, and

(ii) in all other cases, £96.”

This amendment provides that the employers listed in Amendment 10 would be subject to the existing secondary threshold for secondary Class 1 contributions, not the lower threshold proposed in the Bill.

Amendment 14, page 1, line 12, leave out “£96” and insert—

“(i) in respect of an earner in a specified sector under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £175, and

(ii) in all other cases, £96.”

This amendment would exempt adult social care, hospice, primary care providers, nurseries and charities from changes to the threshold.

Amendment 17, page 1, line 12, leave out “£96” and insert—

“(i) in respect of an earner in a specified sector under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £175, and

(ii) in all other cases, £96.”

This amendment would exempt adult social care, hospice, primary care providers, nurseries and charities in Northern Ireland from changes to the threshold.

Amendment 24, page 1, line 12, leave out “£96” and insert—

“(i) where the earner is a veteran within the meaning of section 9AA(3) of the Social Security Contributions and Benefits Act 1992, £175, and

(ii) in all other cases, £96.”

See Amendment 23.

Amendment 3, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits Act 1992 or section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £9,100, and

(ii) in all other cases £5,000.””

This amendment is linked to Amendments 1 and 2.

Amendment 6, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) in respect of an earner listed in section 9AA(1) of the Social Security Contributions and Benefits Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) in respect of an earner listed in section 9AA(1) of the Social Security Contributions and Benefits Act 1992, £9,100, and

(ii) in all other cases £5,000.””

Amendment 9, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) in respect of an earner to whom the healthcare and small charities secondary percentage under section 9(1B) of the Social Security Contributions and Benefits Act 1992 applies, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) in respect of an earner to whom the healthcare and small charities secondary percentage under section 9(1B) of the Social Security Contributions and Benefits Act 1992 applies, £9,100, and

(ii) in all other cases £5,000.””

Amendment 12, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) for a specified employer under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £9,100, and

(ii) in all other cases £5,000.””

This amendment makes provision for the monthly and annual thresholds in line with Amendment 11.

Amendment 15, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) in respect of an earner in a specified sector under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) in respect of an earner under section 9(1B) of the Social Security Contributions and Benefits Act 1992, £9,100, and

(ii) in all other cases £5,000.””

This amendment would exempt adult social care, hospice, primary care providers, nurseries and charities from changes to the threshold.

Amendment 18, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) in respect of an earner in a specified sector under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £758, and

(ii) in all other cases, £417”, and

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) in respect of an earner under section 9(1B) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, £9,100, and

(ii) in all other cases £5,000.””

This amendment would exempt adult social care, hospice, primary care providers, nurseries and charities in Northern Ireland from changes to the threshold.

Amendment 25, page 1, line 14, leave out paragraphs (a) and (b) and insert—

“(a) in sub-paragraph (a), for “£758” substitute—

“(i) where the earner is a veteran within the meaning of section 9AA(3) of the Social Security Contributions and Benefits Act 1992, £758, and

(ii) in all other cases, £417”, and”

(b) in sub-paragraph (b), for “£9,100” substitute—

“(i) where the earner is a veteran within the meaning of section 9AA(3) of the Social Security Contributions and Benefits Act 1992, £9,100, and

(ii) in all other cases £5,000.””

See Amendment 23.

Clause 2 stand part.

Clauses 3 and 4 stand part.

New clause 1—Review of the impact of the Act—

“The Chancellor of the Exchequer must, within a year of this Act being passed, publish an assessment of the impact of the changes introduced by this Act on—

(a) rates of employment,

(b) real wages,

(c) inflation, and

(d) real household disposable income.”

New clause 2—Review of effect on SMEs, hospitality, tourism and seasonal workers—

“(1) The Chancellor of the Exchequer must, within six months of the passing of this Act, lay before Parliament a review of the impact of the measures contained in this Act.

(2) The review must consider in particular—

(a) the impact of those measures on the finances and staffing of small and medium sized businesses;

(b) the impact of those measures on the finances and staffing of small and medium sized businesses in the hospitality and tourism sector;

(c) the impact of those measures on sectors who rely on seasonal workers.

(3) In this section, “small and medium sized businesses” means any business which has an average headcount of staff of less than 250 in the tax year 2023-24.”

This new clause would require the Government to produce an impact assessment of the effect of the Act on SMEs, Hospitality, Tourism and Seasonal workers and on the sectors relying on seasonal workers.

New clause 3—Review of effect of employer NIC threshold—

“(1) The Chancellor of the Exchequer must, within six months of the passing of this Act, lay before Parliament a review of the impact of the measures contained in this Act on part-time workers.

(2) The review must consider in particular the effect of the threshold set by section 2 of this Act on part-time workers—

(a) earning £5,000 - £9,000, or

(b) working under 16 hours per week.”

This new clause would require the Government to produce a report into the impact of the employer NIC threshold on part-time staff, especially those who are lower paid or working less than 16 hours a week.

New clause 4—Employment allowance: review of exception on childcare service providers—

“(1) The Chancellor of the Exchequer must conduct a review of how the exception from the employment allowance under section 2 of the National Insurance Contributions Act 2014 (“the 2014 Act”) affects providers of childcare services.

(2) The review must consider the likely impact on providers of childcare services were section 2 of the 2014 Act to be amended to enable such providers to qualify for the allowance.

(3) A report setting out the findings of the review must be published and laid before both Houses of Parliament within six months of this Act being passed.”

[Pippa Heylings]

These hikes in employer national insurance contributions are not just numbers on a spreadsheet, but will have real and damaging consequences and will strike at the heart of small and medium-sized businesses, which are the backbone of our economy. In my constituency in South Cambridgeshire, we have one of the highest densities of small and medium-sized enterprises, principally in the biotech and life sciences sector, which is a growth area for our economy. It is critical that we get this right, and I have heard from the sector that it is troubled by this legislation.

More worryingly, the consequences will extend to our social and healthcare sectors, which are already under immense strain. GP surgeries and care homes across the UK are at risk of being severely impacted. Those are essential frontline services, which are essential to supporting the NHS and to fulfilling this Government’s mission of moving from treatment to prevention, and from hospital to community.

How can we expect to tackle the backlog in routine operations, and how can we deal with the winter waiting lists at accident and emergency, and with so much pain and anguish, if the primary care providers that form the foundation of our healthcare system are being undermined by this tax increase?

[Carla Denyer (Bristol Central) (Green)]

I thank the hon. Member for allowing me to speak briefly. She references primary care. I have heard from five different GP surgeries in my constituency, who have written to me to warn that the national insurance increase will directly undermine patient care, when GP practices are already under severe financial strain due to years of neglect. Does she agree that the Government’s process of addressing national insurance costs via GP contract negotiations is just too slow? It could go on until spring, but practices are making staffing decisions right now.

[Pippa Heylings]

I agree. What the hon. Member says is critical, and I will come on to the situation with our GPs. The Lib Dems continue to highlight the point that to fix the NHS, we have to fix the social care crisis. Freeing up hospital beds requires us to fix the social care sector. According to research, 60% of the UK’s care home beds are provided by private companies, which are on the brink of bankruptcy and are being tipped over the edge thanks to these changes and rises in employers’ national insurance contributions. We do not understand how that can align with the plans of the Chancellor and the Health Secretary to alleviate pressure on hospitals and ensure effective healthcare delivery.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

The hon. Member has hit the nail on the head. The Labour Government say that they want to deal with this situation, and that they effectively protected secondary care, but the NI applies to GPs at the front end and care homes at the back end. That means that it will be the hospitals who hold the responsibility—the acute places that we need to keep clear if we are to help the backlog move through. Without getting an answer now, we risk recruitment decisions being kept on hold over the next three or four months and cutbacks being made. Does the hon. Member agree that, on top of the difficulties of an already hard winter, that will cripple the NHS?

[Pippa Heylings]

I agree with the hon. Member. I will give one example: the Arthur Rank hospice, which serves all of Cambridgeshire. I had a tour there and saw the work being done by its dedicated professionals. I was informed by its senior leadership that these hikes in national insurance contributions for employers will be the equivalent of £230,000 in additional payroll costs on top of the fundraising that it already has to do. That is money that it does not have. We know from the debate on assisted dying, assisted suicide and the terminally ill how critical palliative care and end-of-life care is. That is one hospice that will struggle severely to deal with these charges.

Hon. Members have spoken about the GP crisis. According to the British Medical Association, 1,387 GP practices have closed since 2015 and the NHS has lost the equivalent of 1,333 full-time, fully qualified GPs. Each GP is responsible for an average of 2,294 patients, and about 3 million people have been directly affected in the last decade by shrinking GP numbers. At a time when we desperately need more GPs, we are introducing a tax that risks driving even more practices out of business. It is not just me saying that; I am sure that hon. Members across the House will have heard from GPs in their constituencies.

In my constituency of South Cambridgeshire, I have heard from the Harston, Comberton, Queen Edith, Eversden and Melbourn practices. I have spoken in particular to Dr Gee of Harston surgery, who has told me that his practice with 7,600 patients faces a £20,000 bill from April just to maintain its current services—just to stand still.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

The hon. Lady is making a tremendously informed speech and demonstrating a level of understanding of primary care and the care sector that we could only dream of from the Government. Is it her concern that many charities, voluntary sector organisations and GP surgeries are already operating on the thinnest margins of financial sustainability and that this measure will torpedo the very organisations that protect our communities from absolute chaos? Secondary care cannot do it alone; it is upheld by primary care and the care sector. Is she as concerned as many other hon. Members that this will cause absolute chaos?

[Pippa Heylings]

I agree with the hon. Member. I know that the Government are in conversation with GPs, but GPs are writing to us saying that they are seriously concerned.

The GP in Harston said:

“GPs cannot raise prices or operate at a loss.”

They have not had clarification or confirmation from the Government about how funding that is to be given to others in the public sector will be available to them. Just at the critical time when GPs are coming to their annual spending reviews and budgeting, the Government are bringing them this uncertainty. GPs do not feel that they are getting the right messaging or any kind of clarity that will save people’s jobs.

[Robin Swann (South Antrim) (UUP)]

I thank the hon. Member for giving way; she has been generous with her time. Does she realise that this is not just a problem in England, Scotland and Wales? It is a significant problem in Northern Ireland, where we have already seen a high number of GP practices returning their contracts. At this time when the solution was meant to be to move to multidisciplinary teams, the increase in national insurance contributions for GPs as employers is putting additional stress on their contracts, given the amount of money they are receiving from central Government. In Northern Ireland, 75% of our domiciliary care and home care is provided by private suppliers, and this additional cost will be added to them as well.

[Pippa Heylings]

I agree with the hon. Member. In my constituency of South Cambridgeshire, we had the tragic situation of four much-loved, much-respected family doctors handing back their contracts. It happened at East Barnwell surgery, to the distress of those GPs and all their patients. That is because of the contract, and due to failures by the previous Conservative Government to understand in the GP funding formula what deprivation as well as age demographics mean in that contract. On top of that, the hikes in employer national insurance contributions have driven them over the edge.

[Sir Edward Leigh (Gainsborough) (Con)]

We had this great debate on assisted dying where every single person who spoke said it was essential that we improve palliative care. I wonder whether we could form a consensus in this Committee. One compromise that the Government could make is to take hospices out of this tax. That would be so popular, achieve so much and ensure that our elderly and frail people were properly looked after. I give that one compromise to the Government.

[Pippa Heylings]

I thank the right hon. Member. As I mentioned, Arthur Rank hospice in my constituency is one such hospice that should definitely have that compromise. Not only that; we have to look at the whole primary care sector—both GPs and independent care homes—because that is what will winter-proof our NHS. We cannot fix the NHS without fixing social care.

The national insurance increases are not just unwise; they are unthinkable. We are in a time of healthcare crisis when people are already struggling to secure appointments. Despite the Government’s assurances, these tax rises will inevitably affect ordinary people. They will particularly hurt those desperately trying to access their local GP and crucial appointments.

We cannot and will not fix the NHS by driving its primary care providers into the ground. I urge the Government to engage with our GPs, reconsider and provide immediate reassurance to GP practices, hospices and care homes that they will be protected them from these changes. Without those frontline services, the NHS stands no chance of coming off life support.

[Joe Morris (Hexham) (Lab)]

I rise to speak about the need for the Bill and the continued assault by the Conservative party on public trust and the public finances. When I go out in my constituency, I speak to people who are appreciative of the “bin fire”—that is the term that one of my constituents used—facing Treasury colleagues when we assumed office. Money for projects and half-baked plans was used more to launder the Conservative party’s reputation than to improve our public services.

When someone comes into office and finds out that the job is not as had been advertised and that the previous person in post set fire to the office, they have to do things differently. They have to begin to rebuild trust with the people they serve and to have honest conversations with the public. That is what the Government are determined to doing. [Interruption.] Opposition Members can chunter as much as they like, but they know that they gambled with public trust and undermined every aspect of themselves and the institutions of the British state. That is not just a failure on their part but a failure on the part of everyone in their party and everyone who knocked on doors. Ultimately, they were judged harshly by the British public for that.

The Bill is necessary to repair the public finances and rebuild public trust. We did not want to do this. We had to maintain our manifesto promise not to see tax rises for working people, but we must ensure that the country that we hand on is in a significantly better state than the country we inherited. That is the Government’s task.

Oral Answers to Questions

Pippa Heylings Excerpts

Tuesday 3rd December 2024 Commons Chamber

[Rachel Reeves]

One of the current challenges, as the hon. Gentleman will know, is that agricultural property relief is often used for tax avoidance. People are buying farmland not because they are family farmers but because they do not want to pay any inheritance tax. That is why we are reforming the system to bring in much-needed money to fund our public services, and to have a fair system with a 50% discount to inheritance tax paid on agricultural property and a 10-year period to pay that inheritance tax, interest free.

[Pippa Heylings (South Cambridgeshire) (LD)]

Last week, I joined a biotech boot camp in South Cambridgeshire. Although the investors and entrepreneurs recognise and welcome the research and development budget announced in the Budget, they said it is a reduction from 2021. Does the Chancellor recognise that we need to increase investment in R&D to encourage long-term investment in our leading services?

[Rachel Reeves]

We were really pleased to announce an R&D budget of more than £20 billion at the autumn Budget. This is important to funding and accelerating R&D not just in the hon. Lady’s constituency but across the country. Combined with the corporate tax road map, as well as the commitment to continuing funding for Horizon, our universities and great innovators can look to the future with confidence.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Pippa Heylings Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[James Murray]

I will make some progress as I want to explain why we are taking this tough decision, and why it is so important that we take this decision now, as set out by the Chancellor in the Budget. Revenue raised by measures in the Bill will play a critical role in enabling the Government to fix the public finances, restore economic stability in a fiscally responsible way, and get the NHS back on its feet.

[Pippa Heylings (South Cambridgeshire) (LD)]

Will the Minister give way?

[James Murray]

I will make some progress.

We know how crucial economic stability is for businesses taking investment decisions, and as I said to my hon. Friend the Member for Bournemouth East (Tom Hayes), we know how crucial it is for businesses to have a healthy NHS. As a result of measures in the Bill, as well as wider measures announced in the Budget, the NHS will receive an extra £22.6 billion increase in resource spending to deliver 40,000 extra elective appointments a week. That is urgently needed to get the NHS back on its feet. The increase in funding will be done within our tough fiscal rules—new rules that will bring an end to borrowing for day-to-day spending, something that the previous Government never achieved or even aimed for.

--- Later in debate ---

[Luke Murphy]

The Bill, and the Budget, protect the smallest businesses, as the Minister has already explained. It is disappointing to hear the hon. Member sharing the Conservative party’s cakeism. Opposition Members must surely support the investments that the Bill will deliver, but if they oppose the Bill, how do they propose to fund them? Turning up at the supermarket with a long shopping list but no means to pay does not work in real life, and it does not work in government either.

The Conservatives have clearly learnt nothing from their kamikaze mini-Budget of 2022. Perhaps they believe that cakeism has just not been tried properly. This Government, by contrast, have taken the tough but fair decisions to protect working people, invest in our NHS and rebuild our public services. For too long the burden of tax has fallen on working people, but under this Government, larger businesses and the richest will pay a little more in tax to help fund the NHS and other public services on which working people rely. Where the Conservatives would either cut public services or pick the pockets of working people, this Government are asking those with the broadest shoulders to pay a bit more to help repair our broken public services—broken over the last 14 years. This Bill will help to deliver on the priorities of my constituents in Basingstoke, who will be able to see a doctor when they need one, and schools will be able to deliver the best—

[Pippa Heylings]

Will the hon. Member reassure the GPs in my constituency, in Harston, Comberton, the Eversdens, Melbourn and Queen Edith’s, who have sought reassurances that the Government do not intend to threaten the viability of thousands of NHS general practices through these charges?

[Luke Murphy]

I am not sure that it is for me to give reassurances—it is probably for Ministers to do that—but what I can do is repeat what the Minister said earlier: the Government will bring forward the settlement for GPs in the usual way.