National Insurance Contributions (Increase of Thresholds) Bill

Sarah Atherton Excerpts

2nd reading
Thursday 24th March 2022 Commons Chamber

[Jacob Young]

rose—

[Sarah Atherton (Wrexham) (Con)]

rose—

[James Murray]

I give way to the hon. Lady; the hon. Gentleman has already made several comments.

[Sarah Atherton]

I thank the hon. Gentleman. I am interested in what the Opposition are saying about not raising taxes. Will he explain why the Welsh Labour Government have not ruled out tax rises? It is in their discretion to do so, but they are not considering doing that until after the May elections.

[James Murray]

I repeat a principle I mentioned earlier to the hon. Member for Bury North (James Daly): the remit of the Bill is national insurance and related matters, such as the spring statement yesterday. I will continue to focus my remarks on those.

The windfall tax that we have been pushing the Chancellor to adopt would fund support for people who need help with their energy bills now. As we have long said, alongside that immediate help we urgently need more investment in alternative sources of energy and insulation for our homes. That investment would help to cut energy bills in the longer run, as well as improving our energy independence and security. Yet on that front, the Chancellor has been all but silent, too.

Yesterday, the Chancellor announced a cut in VAT for energy-saving materials, but I do not think anyone believes that that is anywhere near enough to help the majority of families upgrade their homes. Our pledge, by contrast, is to invest £6 billion each year for 10 years to upgrade 19 million homes. That would cut energy bills by up to £400 a year while cutting gas imports by 15% too. That is the kind of transformational programme that our country needs.

National Insurance Contributions (Increase of Thresholds) Bill

Sarah Atherton Excerpts

Committee stage
Thursday 24th March 2022 Commons Chamber

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Before I call Sarah Atherton, while I am sitting here I am acting as Chair of the Committee, rather than as Deputy Speaker. It is only a technicality, but we should get it right.

[Sarah Atherton]

Thank you, Chair. I wish to speak against amendment 1, in the name of the hon. Member for North East Fife (Wendy Chamberlain), and against new clause 1, in the name of the right hon. Member for Hayes and Harlington (John McDonnell). Amendment 1 is simply impractical. Employers, HMRC and payroll systems do not have time to bring these measures into effect by April. Our own pay body, IPSA, could not make these changes in time, let alone small and medium-sized enterprises and bigger companies. July is the earliest that can be done, and the Government should be commended on the pace with which the change will be universally introduced, bearing in mind that we will be midway through the financial year. The Government understand the needs of constituents. The cost of living challenge is hitting now, post-covid, and the Government are acting with haste.

My opposition to new clause 1 is similar: timing. We should not postpone this measure by undertaking impact reports that would cause unnecessary delays for families who need support with the cost of living as soon as possible. Wrexham has more than the Welsh and UK average of lower income households, and under the Welsh Labour Administration, for the past 22 years those numbers have been increasing, with more child poverty and more struggling households. We all accept that the situation has not been helped by the global pandemic, which none of us foresaw. Nor did we foresee the war on the fringes of Europe.

This is not strictly within the remit of the Bill, but I concur with my hon. Friend the Member for South Dorset (Richard Drax) in his call to increase defence spending.