Health and Social Care Levy

Sam Tarry Excerpts

1st reading
Wednesday 8th September 2021 Commons Chamber

[Sam Tarry (Ilford South) (Lab)]

I find it incredibly ironic that the Government scrapped the chance today to debate the removal of the universal credit uplift—perhaps because they did not want to be exposed for taking money away from the some of the poorest in society—to instead offer up a debate about disproportionately hitting some of the lowest-paid people in our country.

The double whammy of a national insurance hike and a universal credit cut shows the complete disdain that the Government have for the working population. Far from being the supposed party of aspiration, they seem to be nothing more than they have always been— the party of the 1%—and they are not even trying to hide it with this regressive tax grab. Instead of sitting in front of the House today to front up this disastrous decision, the Chancellor seems to have gone AWOL. Maybe he spent the day in Sherwood forest as a reverse Robin Hood, robbing the poor to give money to the rich.

As we have repeatedly heard from so many people in the House today, a staggering 2.5 million families across the country will be hit by this huge national insurance tax rise as well as the £20-a-week cut to universal credit. In constituencies such as mine, which has people who are among the lowest paid in the country, this devastating news will mean that in many cases, people will be pushed further below the poverty line. What do the Government have to say to those people or to the struggling small and medium-sized enterprises and businesses that have battled through the pandemic? What am I supposed to say to the people in my constituency—the public sector workers—who have been hit by wave after wave of pay freezes, and now the Government want to hit them again with a national insurance increase? What about those families who are already stretched to breaking point, who will now be forced to sell their homes and plunder their life savings to pay for the £86,000 of social care? The silence from the Government on that point in particular today has been deafening.

This week, the TUC made it crystal clear that it is completely unacceptable to hit the young and low-paid workers while leaving the wealthy untouched. It cannot be right that 95% of this tax bombshell comes from those in employment. Let us be absolutely clear: this is, unfortunately, a tax on jobs and on our economic recovery from the pandemic.

It is incredible how ruthless the ideology of the Conservatives can be, yet when the facts are staring them in the face and it makes financial sense, the Tories simply cannot countenance taxing their own. It is very simple and I will spell it out very clearly: those with the broadest shoulders should bear the greatest responsibility. Even the ultra free marketeers on the Government Benches have voiced concerns about the policy.

We need to consider more progressive taxation measures, such as a wealth tax to ensure that the wealthiest pay their fair share. Let us be really clear about what has happened in the past 18 months: Britain has created a record number of millionaires and billionaires during the coronavirus pandemic. Their wealth has surged—the combined wealth of billionaires in this country grew more than 20%. Instead of raiding the pockets of the lowest paid and of small and medium-sized enterprises, who may struggle to afford it, why are the Government not closing the tax loopholes and targeting the tax havens?

We also need an assessment of the impact on jobs, but we have not heard about it from the Government today and so far they have resolutely refused to do one. We need jobs to get out of this crisis into growth and get more tax coming in. We also need a full, comprehensive social care plan that is properly and fairly funded and integrated with the NHS; a system that looks after everyone in our country from cradle to grave; and, most importantly, a proposal that does not pit one generation against another that is less wealthy. The plan is unjust and badly timed, and it will not fix the social care crisis.