National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Roger Gale and Gregory Stafford

Consideration of Lords message
Tuesday 25th March 2025 Commons Chamber

[Gregory Stafford]

The hon. Gentleman makes an excellent point, which has been made by Opposition Members on numerous occasions. It does not surprise me that Labour Members do not understand the economy. I did hope that they would understand the care sector, which has been telling them time and again that this national insurance increase will hit it disproportionately and cause it to reduce and, indeed, close services.

I think of Phyllis Tuckwell hospice in the centre of Farnham in my constituency, which is fortunately going through a multimillion pound rebuild as we speak, but when it reopens, it will be hit by these national insurance contributions and will have to make decisions about what services it can provide to my constituency and the surrounding areas of Surrey and northern Hampshire. Likewise, on Friday I will see Shooting Star children’s hospice, which is a fabulous children’s hospice that I have visited on a number of occasions. What is galling to me is that I see photographs of Labour Members turning up to Shooting Star and similar hospices, putting their arms around people and saying what a wonderful job they are doing, but later today they will walk through the Division Lobby to take money away from them. What hypocrisy.

We already know that there are workforce challenges in the care sector, and especially in the hospice sector, so why on earth are the Government targeting those sectors for raising national insurance contributions? As Opposition Members have mentioned, this is not an abstract cost that will hit some sort of nebulous business; this is a cost that will hit patients and, in the hospice sector, those who are dying, because care will be taken from them. It is a tax on community care. It is a tax on dying. The Labour Government should be ashamed that they are bringing this in.

[Sir Roger Gale]

We have rightly concentrated a great deal on children’s hospices, and I still hope that at the 11th hour the Government, as a socialist Government, may have some compassion and give some ground. But the other area, which we have not touched on enough, is the independent care providers who are providing services in people’s homes. They will not be able to employ the people that they need—they cannot do so now—even if they can get them. That inevitably means that those cared for will end up in hospital, at still greater cost to the health service.

[Gregory Stafford]

My right hon. Friend makes an excellent point, echoing one made by the hon. Member for Angus and Perthshire Glens (Dave Doogan). That is correct: there will inevitably be a net cost to the Exchequer because of this policy. He is right that home care has not been touched on but will be affected. Home care companies in my constituency will not be able to expand their staff, which is vital to meeting people’s needs.

Pharmacies, which we have not touched on a lot, are in the same position. A few weeks back, I visited Badgerswood pharmacy in Headley in my constituency, and I was told that the measure will hit it hard and cause a real problem in service delivery for my constituents.

This measure will not only have a massive effect on those businesses—GPs, pharmacies, the hospice sector and the home care sector—on the economy, because there will be a net cost, and on patients, who will not receive the services in the wider NHS family that they deserve, but it runs entirely contrary to the Government’s stated policy of wanting to bring healthcare close to home and close to the community. Although they are exempting acute hospital care, which takes place away from the community, they are taxing the bit that they say they want to expand. It is totally illogical, even on the Government’s own policy. I hope that the Government have an 11th hour change of heart, either today or at the emergency Budget tomorrow, because it is vital that we support these sectors.

We see with Lords amendment 21B that the proof of the pudding is in the eating, as it were. If the Government were so convinced that their policy was the right, just, fair and proper one, they would allow a review to go ahead so that we could see its impact. The fact that Government Members will be walking through the Division Lobby to hide this policy from the British people tells us all that we need to know: they know that this policy does not stand up to scrutiny, and they are running from it.