National Insurance Contributions (Secondary Class 1 Contributions) Bill

Richard Tice Excerpts

Consideration of Lords amendments
Wednesday 19th March 2025 Commons Chamber

[James Murray]

I am not clear from the right hon. Gentleman’s intervention whether he finally accepts that we inherited a £22 billion black hole when we entered government. I know that several of his colleagues have sought to rewrite history, but the facts are there. We inherited a completely unsustainable fiscal situation, with pressures and a £22 billion black hole, and we had to take difficult but necessary decisions to remedy that. It was important to do so, because without the basic fiscal responsibility and economic stability that a Government should deliver, investment, which is the basis for growth, will not happen.

[Richard Tice (Boston and Skegness) (Reform)]

The Minister speaks about facts. Is he aware of the fact that when the Labour party won the election, the economy was growing, and is he aware of the fact that it is now shrinking?

[James Murray]

I am very aware of the fact that we inherited an economy and a fiscal situation in a mess. That was completely unsustainable, and it was our duty as a Government to address it. No responsible Government could have let things carry on as they were, with the fiscal situation the way it was. That is why we took the action we did.

Family Businesses

Richard Tice Excerpts

Wednesday 26th February 2025 Commons Chamber

[Joy Morrissey (Beaconsfield) (Con)]

It is a privilege to stand here today on behalf of businesses in Beaconsfield, Marlow and the South Bucks villages. These small family businesses are the backbone of our economy. They are the job creators, they play a vital role in helping our communities, and they deserve our support in this House. Yet it is now clear to businesses in my constituency that they find themselves with a Labour Government who simply do not understand business. This is a Government who seem to think that just by saying the word growth over and over again, it will magically happen. The truth is that businesses create growth, not hot air from the Chancellor. This Government are seriously damaging businesses with a national insurance tax raid that will destroy jobs and put at risk thousands of businesses. Time and again, business owners have warned of the consequences, but they have been met with a wall of silence from the Government. Why? Because this Labour Government simply do not understand business or the consequences of their actions.

At the end of last year, I hosted a roundtable of local, family-run, multigenerational businesses. They have been at the heart of our local economy for decades, but now they are struggling not just with the national insurance threshold increase or the differences that the Employment Rights Bill will bring in, but with skills shortages and the economic uncertainty that that will cause. Now, thanks to this Government’s tax raid, they are being forced to make impossible choices: to cut back on hiring, reduce investment or close their doors altogether.

Let me give the House just one example. I met the owner of a proud family business that has been serving Marlow for over 88 years. He told me plainly that this Government’s policies will make it harder for businesses such as his to survive. His story is one I have heard time and again. This Government do not seem to get that, in lowering the employment national insurance threshold so dramatically, they have made it almost impossible for businesses that employ lots of people to operate in the low-margin sectors.

[Richard Tice (Boston and Skegness) (Reform)]

Does the hon. Lady agree that the Government’s policies have created a hostile environment for family businesses to continue to invest in hiring people and equipment? The damage is that that reduces growth in our economy.

[Joy Morrissey]

The hon. Member makes an excellent point. The policies are damaging; it is a hostile environment for businesses and entrepreneurs who make a difference and who grow the economy and our tax base. That is who this Government are hurting: the people who will make this country great and grow us out of any of the economic issues that we are having now. By hurting entrepreneurs and small businesses, we are cutting ourselves off from growth. Again, growth is not some mythical thing that the Chancellor refers to; it is something delivered by hard-working small family businesses in this country.

Not only small businesses but all service-level jobs in our economy are affected. Care services, retail, hospitality, events—they are just a few of the sectors where businesses increasingly face the impossible choice of cutting jobs or shutting their businesses. Of course, it is not just through national insurance that the Government are raiding businesses or burdening them with over-regulation. Businesses already reeling from the national insurance raid are facing higher business rates, an Employment Rights Bill that is destined to lower employment and the destruction of family farms.

Just yesterday, the British Chambers of Commerce described the stark reality of the “powder keg of costs” facing British businesses. In the avalanche of inconvenient facts for the Government that the British Chambers of Commerce unleashed, one stood out to me: 58% of businesses told the BCC that the costs will impact recruitment, meaning fewer jobs at a time when we need the economy to be growing. This is economic illiteracy on steroids.

I will always stand up for our local family businesses in Beaconsfield, Marlow and the South Bucks villages. Their message to me has been crystal clear: this Government’s tax raid is damaging to them, to jobs and to growth for the future. I urge the Government to wake up to the disaster they are unleashing on businesses in my constituency and across this House.

Agricultural and Business Property Reliefs: OBR Costing

Richard Tice Excerpts

Thursday 23rd January 2025 Commons Chamber

[Richard Tice (Boston and Skegness) (Reform)]

The Minister just mentioned balancing the public finances—those are the key words—through these measures. We have just had the debt figures for December, which are 20% higher than the OBR expected them to be just two months previously. At what point will the Minister and the Government recognise that they have got this badly wrong and change course?

[James Murray]

We recognise that when the Conservative party was in government, it got it badly wrong. The country decided to change course, which is why they elected us into government to fix the public finances, put our public services back on their feet, boost investment and get the economy growing.

UK-China Economic and Financial Dialogue

Richard Tice Excerpts

Tuesday 14th January 2025 Commons Chamber

[Rachel Reeves]

We are working closely with the Scottish Government to ensure that there is a bright future for the people of Grangemouth, because deindustrialisation should not be the future for communities, including in Scotland.

[Richard Tice (Boston and Skegness) (Reform)]

The data in September and October shows that the economy is falling. It is going down and the currency markets and bond markets are selling off and expressing their clear concern that there is no growth and that the economy continues to fall. If the Chancellor is so confident, will she confirm to the House when the economy will start growing again?

[Rachel Reeves]

Growth is the No. 1 mission of this Labour Government, but the truth is that it is not possible to turn things around quickly after 14 years of lacklustre growth and declining living standards under the Conservatives. We are leaving no stone unturned, which is why last week in China we secured £600 million-worth of tangible benefits for the UK economy, helping great British businesses exporting overseas.

Public Finances: Borrowing Costs

Richard Tice Excerpts

Thursday 9th January 2025 Commons Chamber

[Richard Tice (Boston and Skegness) (Reform)]

Is the Chief Secretary aware that the last two months’ GDP figures, for September and October, are both down? Is he aware that sterling is falling—in fact, almost collapsing? Confidence is falling and investors are fleeing. The only things going up are inflation, wasteful public spending and the cost of debt. Be under no illusion: we are heading towards a financial crisis. Will he ask the Chancellor to return from her ridiculous trip to China, to reverse course, and to cut daft spending and wasteful regulations, so that we can create some growth?

[Darren Jones]

I think the question was whether I was going to demand that the Chancellor come back from her trade trip to China. I will not, no.

Farming and Inheritance Tax

Richard Tice Excerpts

Wednesday 4th December 2024 Commons Chamber

[James Murray]

That is not how I interpret the comment, but I make no apology for the fact that we want to support farmers, as well as making our energy transition and building homes for people across the country. We need to ensure that we are achieving all the goals that the people of this country elected us to achieve.

I want to say more about data, because several Members have raised the subject. As I have explained a few times now, the DEFRA data shows the asset value of farms in England, but it is not possible to accurately infer a future inheritance tax liability from data on farm asset values. Any inheritance tax liabilities that farming assets may face will be affected by who the owners are, the nature of the ownership, how many owners there are, any borrowing that they have, and how they plan their affairs.

[Richard Tice (Boston and Skegness) (Reform)]

The Minister talks about data. Given the massive discrepancy involved, and the impact of this policy, if the data shows in 12 months and 24 months that the Government have got this catastrophically wrong, will they revisit the policy and do a U-turn?

[James Murray]

When we approach policies in government we test them thoroughly and consider the details and the data, and we ensure that any conclusions we draw are based on the correct set of data, which is part of the conversation that we are having today. I do not know whether it is due to mischief or misunderstanding, but there is a certain focus on the total value of farms rather than on inheritance tax liabilities. The data on inheritance tax liabilities is the correct data to look at when evaluating the impact that the policy may have.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Richard Tice Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

In the recent autumn Budget—it might feel like a long way away, but it was only a few weeks ago—the Chancellor made a decision to change the system of employer’s national insurance contributions. The purpose was to make the largest businesses make a contribution to fund the public services on which working people and businesses rely.

As part of the changes to national insurance, we have increased the employment allowance to £10,500, explicitly to protect small businesses. The changes mean that a quarter of a million employers will see the amount of national insurance that they pay get cut.

[Richard Tice (Boston and Skegness) (Reform)]

Does the hon. Gentleman seriously consider a GP surgery in my constituency with seven doctors and six members of staff to be one of the largest businesses, even though it is suffering from tens of thousands of pounds in extra costs and will have to lay people off, which will reduce capacity?

[Mark Ferguson]

I thank the hon. Gentleman, because he makes an excellent point that I was hoping to come to later in my speech. The previous Government cut national insurance, and do you know what was also cut? The number of GPs in my constituency. It is more complicated than Members pretend; it is not “national insurance vs. GPs”. If it were that simple, I would have more GPs, not less, in Gateshead Central and Whickham. I would urge those who were enthusiastically cheerleading the previous Government to take a moment to think about that.

VAT: Independent Schools

Richard Tice Excerpts

Tuesday 8th October 2024 Commons Chamber

[Richard Tice (Boston and Skegness) (Reform)]

Education is a charitable endeavour.

[Mr Brash]

The hon. Gentleman was briefly the candidate in my constituency. Given the result, it is rather a shame that he did not continue to be so.

As I understand it, the Opposition could have tabled a motion about anything for today. They could have tabled a motion about the crisis facing children in social care, slowly bankrupting local authorities such as mine. They could have tabled a motion about child poverty which results in 1,500 Hartlepool children not having a bed to sleep in tonight. They could have talked about the scandal of children arriving at school hungry, the 10% cut to our further education sector, the drop of a third in our apprenticeships, and the school cuts that have cost Hartlepool schools £1.7 million in real terms since 2010. But no, they chose to talk about this—the removal of a subsidy that the 93% pay for the 7% who want to send their children to private school. It is wrong and the myths attached to it are ridiculous.

I do not have the time to go into the many things that I would like to say, but I want to finish on one simple point: I am sick and tired of hearing people talk as if the parents of aspiration and the parents who work hard are only those who want to send their children to private school. All parents aspire for their children, all parents work hard for their children, and we stand up for all parents and all children in this country.

--- Later in debate ---

[Richard Tice (Boston and Skegness) (Reform)]

The tragedy of this debate is the vitriolic negativity, when all of us could surely unite in our desire to improve the education of all. The Government could have done something so different. They could have said to the independent sector, “You’re doing well, chaps. Can you give us a bit of help? Can you work with us? Can you share more of your expertise, your wisdom, your success and your facilities? In particular, can you help with regard to special educational needs, where the independent sector is doing so well at no cost to the taxpayer?” I think that would have gained universal enthusiasm and support.

[Nesil Caliskan (Barking) (Lab)]

Will the hon. Member give way?

[Richard Tice]

No, we are short of time.

As a former governor of an independent school, I know that that approach would have been welcomed by the independent sector. Instead, the choice that the Government have made will do the opposite of what they intend. It is not going to raise anything like the funding they think it will: almost 100,000 children will leave the independent sector, many of whom have special educational needs, so it will earn almost nothing.

I spoke earlier about the unintended consequences of this policy. A parent in my constituency has written to me. She has two children with special educational needs at private school, and she cannot afford the VAT, so they are going to go into the state system. The nearest place is an hour away, so now the local authority is going to pick up the cost of the taxi service of over £20,000 per child. Those are the unintended real-world consequences of this choice by this Government. Most shamefully of all, because there is such a lack of capacity in so many areas and so many local authorities, that choice is going to result in bigger class sizes. That means more pressure on hard-pressed teachers in the state system, at a time when we are trying to ease that pressure. This choice is going to damage the education of many hundreds of thousands of children—exactly the opposite of what is intended.

I say to the Minister and his Government that they could choose differently. They could pause this policy, work with the independent sector and gain much more universal support. Instead, we have legal challenges going ahead. As I finish, I ask the Minister to answer this simple question: if those legal challenges end up in the European Court of Human Rights and it rules that the policy is unlawful, will his Government comply with that ruling?

[Madam Deputy Speaker (Caroline Nokes)]

I call Baggy Shanker.

Independent Schools: VAT and Business Rates Exemptions

Richard Tice Excerpts

Tuesday 8th October 2024 Westminster Hall

[Richard Tice (Boston and Skegness) (Reform)]

It is a pleasure to serve under your chairmanship, Dame Caroline. What irony that the Government have sent a Minister to listen to these debates who went to a private school. I wonder whether his parents would have been able to afford the extra 20%.

However, as the hon. Member for Chester South and Eddisbury (Aphra Brandreth) said, this is about the education not just of those at independent schools, but of the hundreds of thousands in the state system. Their education will also be damaged because of the capacity crisis. Class sizes will grow. There is an SEN crisis everywhere. Local authorities are in panic; headteachers are in panic; parents are in panic and, most shamefully of all, children are panicking. Will they be removed from their school in the middle of a school year, be taken from their friends and have their education damaged? It is extraordinary.

I give one example: I have had a letter from a constituent who has two children with SEN provision. She cannot afford the extra 20% so she has to put her children into the state system. There is no capacity within an hour’s drive, so she has a quote from the local taxi firm. The cost to the local authority will be over £20,000 in taxi fares per child. That is not only damaging to the education of children; it is an economics of utter tomfoolery and madness.

Winter Fuel Payment

Richard Tice Excerpts

Tuesday 10th September 2024 Commons Chamber

[Richard Tice (Boston and Skegness) (Reform)]

Last Friday in Boston I was stopped by a pensioner, a lovely lady called Elizabeth, who shook my hand and burst into tears—uncontrollable tears of genuine fear. She represents more than 22,200 pensioners in Boston and Skegness who will lose out through this cruel policy. It was the fear of being cold this winter—not knowing how cold—and the fear of what will happen to energy prices in October. How high will they go in January? It was the unbelievable fear of not knowing whether she will see the end of winter, because that is the reality: older, colder people die early.

We have heard about choices a lot today. It is true that this Government have made a calculated deliberate, heartless, cruel choice to enrich their union paymasters, to enrich public sector workers with no requirements on productivity, to enrich well-paid train drivers and to impoverish pensioners. Let me tell this House that voters will not forget and they will not forgive.