(3 weeks, 1 day ago)
Commons ChamberThe hon. Gentleman talks about the Conservative record. Shall I talk to him about our record on national insurance? In 2010, when Labour was last in office, it broke the economy and left a note saying that there was no money left. We did have to increase national insurance rates—but not by as much as is proposed today. Thereafter, we increased national insurance thresholds with inflation; these proposals do not do that. We introduced the employment allowance, which admittedly the Government are increasing. We then introduced national insurance reliefs for young workers. We increased national insurance income thresholds in 2022, 2023 and 2024. That is the Conservative record. We do not believe in the jobs tax: we do not think it helps growth, and we do not think that it will increase taxation.
I will make a bit more progress and then give way to my right hon. Friend.
If the Minister does not like the Resolution Foundation’s judgment on this tax, he should just listen to the Institute for Fiscal Studies, which said:
“Simple economic theory suggests that the incidence of employer NICs and employee NICs should be the same, at least in the long run. It is likely that the long-run incidence of both employer and employee NICs is predominantly on employees”.
The measures in the Bill represent by far the largest part of the tax grab in the October Budget. The Treasury Red Book assesses that these measures will raise £23.7 billion in the next financial year, rising to £25.7 billion, but the Minister knows that behavioural changes means that they will actually raise substantially less; the IFS estimates about £16 billion.
I note that in the Red Book there were three opportunities for this jobs tax to be referred to as “Delivering on our Promises”. There is:
“Delivering on our Promises—New Policy to Close the Tax Gap”,
“Delivering on our Promises—Collecting Tax That is Due”
and even the catch-all:
“Delivering on our Promises—Other Manifesto Tax Commitments”,
but the increase in national insurance contributions cannot be included in any of those, because Labour politicians hid their intentions from the British voters at the election.
(10 years ago)
Commons Chamber5. What projects her Department is supporting in Nigeria to counter the effects of Boko Haram.
My recollection is that we take this matter very seriously indeed with respect to—sorry, I have misappropriated the question. [Interruption.] I apologise, Mr Speaker
Boko Haram can only be defeated by action by the Nigerian Government on a security front and on a development front and by provision of leadership. We in DFID have doubled our programme of investment in the north-east of Nigeria and are working to that end.
I thank the Minister for that reply. The active targeting of schools by Boko Haram, and also in Peshawar this week, shows that there is no limit to the barbarism and depravity of such extremists. In tackling such extremists it is important that the security forces maintain civilised standards. Is my right hon. Friend aware of the investigations by Amnesty International and can he assure the House that no DFID projects inadvertently or indirectly harm people by lowering the standards of the security forces?
We take that report very seriously indeed. Human rights abuses exacerbate insurgencies. I can give my hon. Friend that assurance that we do not fund or support in any way the security forces that are responsible for those actions. Indeed, our programme of Justice for All—J4A—ensures that all Nigerians can have access to better justice and human rights.
(10 years, 1 month ago)
Commons ChamberWill the Minister explain the process behind this particular money resolution? In an era in which the country knows that the Government have no money to throw around, what process did he go through to determine that there should be expenditure on progressing this Bill, which, if it is passed, would have serious implications for public expenditure?
The process is simple. We discussed it a great deal on Second Reading, but my hon. Friend is now effectively attempting to reopen that debate. The Bill was approved according to the clearly expressed will of the House, but it concerns a pledge that was in every party’s manifesto.