National Insurance Contributions (Secondary Class 1 Contributions) Bill Debate

Full Debate: Read Full Debate
Department: HM Treasury

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Rachel Blake Excerpts
2nd reading
Tuesday 3rd December 2024

(2 weeks, 5 days ago)

Commons Chamber
Read Full debate National Insurance Contributions (Secondary Class 1 Contributions) Bill 2024-26 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Bradley Thomas Portrait Bradley Thomas (Bromsgrove) (Con)
- View Speech - Hansard - - - Excerpts

There appears to be a glaring omission on the part of the Government: without a thriving private sector, there is no public sector to fund at all. I wish that Labour would acknowledge that much more vehemently and clearly than it appears to.

The Government talk a lot about public services and how the proposals they have put forward in the Budget will support a thriving public sector, but we do not hear about the public sector needing to deliver much more, in terms of productivity gains. If we keep throwing money into public services without a serious plan for structural reform, we fail every single stakeholder—the taxpayer, and, if we are talking about the NHS, the patient and the doctor.

Rachel Blake Portrait Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
- Hansard - -

We have heard a lot this afternoon about investment in the public sector and what the proposals will do to small businesses, but we have not heard the Opposition recognise that this country needs a healthy workforce. The Bill proposes a sustainable and manageable approach to funding that healthy workforce. Will the hon. Gentleman describe to the House how damaging the previous Government’s treatment of the workforce was, and the long-standing and growing number of people claiming out-of-work benefits? Does he not see that the Bill will make a sustainable contribution?

Bradley Thomas Portrait Bradley Thomas
- Hansard - - - Excerpts

I think the hon. Lady misses the point that I am making. If we are to have a thriving, sustainable set of public services, it is not just a case of funding them; we need structural reform, so that we can deliver the best-quality services at the point of need. Take the NHS as an example. It is fundamentally different from how it was at its inception. People live longer and suffer from different illnesses. It is incumbent on Government, the whole of the public sector and this Parliament to focus on how money is spent to deliver value for money for everyone involved.

A few weeks ago, the Chancellor said that businesses that were concerned about the impact of proposals in this Budget should “cut their cloth accordingly”. Well, the same should apply to Government. Every single one of us should challenge Government to spend our money much more effectively. Once we do that, the tax burden will come down, and when that happens, we can pass on those savings. It is those savings that will ultimately underpin and provide the foundation for an economy that will grow and incentivise businesses across the board.

The Government talk a lot about the climate and the context that they inherited, but they repeatedly fail to acknowledge covid—one of the biggest public finance interventions this country has seen, which took place only a few years ago.

National Insurance Contributions (Secondary Class 1 Contributions) Bill Debate

Full Debate: Read Full Debate
Department: HM Treasury

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Rachel Blake Excerpts
Joe Morris Portrait Joe Morris
- Hansard - - - Excerpts

As the hon. Lady well knows, when one inherits a difficult context, one has to take decisions that one did not want to take. The public understand that the NICs rise was important and was needed because of the circumstances that we inherited and to repair the black hole that we found in the public finances. Spending the national overdraft three times and not telling anyone about it is what has fundamentally undermined public trust.

Rachel Blake Portrait Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
- Hansard - -

Listening to Members speaking to the amendments has caused me to reflect on the challenges at the heart of this debate. Does my hon. Friend agree that the amendments that are trying to unpick a holistic approach to fixing the foundations of our public finances entirely miss the point, first of the challenge that this Government face in re-establishing confidence in public finances, and secondly of our approach to long-term investment in public services that are so desperately needed? I believe that all the amendments—

Caroline Nokes Portrait The Second Deputy Chairman
- Hansard - - - Excerpts

Order. The hon. Lady has every opportunity to contribute to this debate if she so wishes. Interventions are getting longer and longer; they must be shorter.