National Insurance Contributions (Secondary Class 1 Contributions) Bill

Steff Aquarone Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Steff Aquarone (North Norfolk) (LD)]

Since the changes to national insurance were announced in the Budget, I have been contacted by constituents from a whole load of different sectors who have said how worried they are about the changes.

I have had deeply concerned GPs tell me about the impact the changes will have on their already overstretched budgets. Local dentists, of whom there are already far too few, have said the changes make it even harder for them to deliver treatments under the current NHS dental contract. Small business owners, who, as we have heard, are the backbone of much of the local economy, especially in North Norfolk, are worried the changes might push their slim profit margins into the red.

I want to raise the plight of a very important part of the North Norfolk business economy: our small cultural venues. I heard recently from Debbie, who runs the much-loved Sheringham Little Theatre, which might be little in name but is big in impact. Sheringham Little Theatre has nurtured the careers of dozens of young theatre performers, as well as technicians, writers and directors. It is a fantastic venue to put on productions, and was supported by one of North Norfolk’s most famous residents, the late and great John Hurt. As a registered charity, Sheringham Little Theatre also provides volunteering opportunities that are vital to reducing social isolation and supporting the local community. The changes in the Budget are a cause for serious concern to Debbie and her team. They have been able to secure fundraising in the past for exciting new projects and capital investment, but now they will need to raise thousands of pounds in donations just to keep the lights on.

Even in commercial venues, the pressure of a blanket increase in employer national insurance is threatening jobs and entire venues. Cromer pier is one of the most famous icons in North Norfolk, and is 2024’s pier of the year. Even with a commercial operator, who has brought it from loss making to net revenue generating for the local council, these changes risk shuttering Europe’s last end-of-pier theatre.

The lack of protection for arts and cultural venues is hugely demoralising for both those venues, and prevents them from making new investments and providing more opportunities locally. North Norfolk’s creative industry is incredibly exciting and growing at pace. The loss of venues and organisations such as the Little Theatre would be a hammer blow for a blossoming sector in my constituency. Our small cultural and arts venues contribute so much to North Norfolk, both through the joy they bring with their events and through their contribution to our local economy. They are crucial to our tourism industry as well.

Unlike those on the Conservative Benches, the Liberal Democrats are happy to share our alternative solutions when it comes to our concerns with the Budget. Rather than imposing a blanket pre-profit tax such as this, why do the Government not try a tech tax, tighten up on tax havens that are still Crown dependencies or disallow brand licensing as a deduction against profits by global corporations? Where we were once promised radical reform, we have ended up with hope-crushing, growth-stifling jobs taxes. It cannot be fair that organisations such as Sheringham Little Theatre are forced to struggle while billionaire tech barons such as Elon Musk and others continue to sit on great hoards of taxable revenue.

I hope the Government will listen to the Liberal Democrats’ proposals and go back to the drawing board to make their plans fairer for everyone. Unfortunately, the Bill punishes small businesses, burdens local authorities and adds even more strain to our health services. I will vote against it this evening.