National Insurance Contributions (Secondary Class 1 Contributions) Bill

Vikki Slade Excerpts

Consideration of Lords amendments
Wednesday 19th March 2025 Commons Chamber

[Dr Sandher]

It is a pretty well established introduction to the tax system to have both employee and employer NICs. The point about simplicity is about where the tax is levied. I will come to the specific point that the hon. Member raises later in my speech and hopefully provide some illumination.

The revenue we are raising will be used to invest in our nation’s prosperity: insulating our homes, rebuilding our crumbling schools and hiring more nurses to care for our loved ones. It is about getting costs down and creating good jobs. It is about rebuilding this country after, frankly, more than a decade of despondency and despair.

The amendments before us represent bad policy that puts that at risk. As I may have mentioned in this House once or twice before, I used to be an economist. I can tell the House that a good tax is one that raises revenue and does not introduce perverse incentives. A good tax ensures that resources go to activity because there are higher levels of productivity. A good tax system introduces three principles. The first is neutrality: it treats similar activities in similar ways. The second is simplicity: it is straightforward and easy to implement. The third is stability: it is predictable.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

The hon. Member is talking about productivity and growth. How does he square that with the additional tax on early years care? That care allows parents to work. If parents cannot work and employers cannot afford to bring young people through, how are we going to get the nation working? Nurseries are on their knees and they cannot take on more children, because there are strict rules about ratios and the amount of space each child takes.

[Dr Sandher]

First, there is more funding going into the early years, but I will deal with the tax side as I speak to the specific amendments.

Each amendment seeks to carve out an exemption for something, and I am sure that Members across the House identify with and, indeed, support some of those individual exemptions. However, if we were to pass the amendments, they would give specified sectors advantages not enjoyed by others.