Social Security

Steven Bonnar Excerpts

Tuesday 5th May 2020 Commons Chamber

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP) [V]]

I am grateful for the opportunity to contribute today on a matter that affects many charities, small companies and amateur clubs across my constituency and across Scotland. I place on record that I fully embrace these virtual proceedings, allowing us to look after the interests of our constituencies. The credit of course goes to the staff and officials behind the scenes who are pulling this all together for us.

I am speaking broadly in support of the motion as we in the SNP welcome an increase in the employment allowance. It is our desire to ensure that companies have the confidence to increase their workforce in what are uncertain times. However, I would like to have seen the increase go further still, and we will continue to oppose the UK Government’s restrictions on employment allowance eligibility, which particularly hamper single-employee companies in my constituency. We back a rise in the employment allowance, but we also want a policy that covers all firms and organisations, such as the many charitable organisations, amateur sports clubs and companies right across my constituency and Scotland to which this allowance makes a real difference each and every year.

The increase in the maximum allowance of £4,000 a year is an improvement, and it is welcome, but we would like to see this increase further. Our election manifesto called for an increase to £6,000 a year. This was before the crisis that many organisations now face. The reality is that many of them may not survive to avail themselves of this allowance. The UK Government have also estimated that around 7% of all businesses will no longer be eligible. Removing this relief will cost affected employers up to an extra £3,000 per tax year.

Overarching all this, the SNP wants the UK Government to devolve control of national insurance to the Scottish Parliament, allowing us to make our own decisions on a tax that directly impacts our employers’ ability to afford to create the new jobs that we need here in my constituency and all across Scotland. We support the measure and will not divide the House on this, but it could have gone further.