(4 years, 7 months ago)
Commons ChamberI know that my hon. Friend takes a keen interest in defence matters, and I absolutely do agree that the Royal Navy continues to provide great service to the territories, particularly in the Caribbean. I, too, commend the servicemen and women of RFA Argus, who are providing vital support to the overseas territories. RFA Argus is boosting the resilience of the territories as they prepare for hurricane season. The FCO and DFID are providing further support to the territories to help deal with the impact of covid-19. In addition, an MOD security assistance team will be supporting local authorities in some of the territories as they respond to the coronavirus.
Hand washing with soap and water, as we are all recognising, is the first line of defence against coronavirus transmission. The UK has world-leading commercial and scientific expertise on water, sanitation and hygiene. DFID has launched a £100 million scheme with British soap company Unilever to promote hygiene in developing countries, and has given a further £20 million to UNICEF to strengthen its coronavirus response in these areas. We are helping people around the world to defeat this virus.
The International Rescue Committee has highlighted that hand-washing facilities are absolutely crucial in preventing the spread of diseases in the developing world. Our experience of Ebola shows that NGOs currently working on the ground are best placed to scale up an emergency response, so I welcome the funding given to the Red Cross and others, but what plans does the Secretary of State have to increase funding to other local NGOs working within communities?
Good hygiene is the single most effective action an individual can take to prevent covid-19 transmission; that is absolutely an important point. Water sanitation and hygiene are a key part of DFID’s work and vital in humanitarian crises. DFID funds the provision of safe water and sanitation in disaster areas across the globe. Since 2015, DFID has helped over 51 million poor people in Africa and Asia get access to a drinking water supply or toilet for the first time. But we recognise there is still more to do.
Q 3 You will know that there has been a lot of speculation in the past two days regarding the possibility of changing the national insurance contribution because of the tax credit cuts. Have you any comment to make on that as a possibility?
John Whiting: Again, Mr Mc Nally, I have to say that the actual rates of national insurance are something that we at the Office of Tax Simplification steer clear of, other than to consider whether they add complexity or simplification. To give an example away from national insurance, we drew attention to having two rates of corporation tax. Obviously, that was a complexity, as they have now been harmonised on one rate. That is an obvious simplification and easier for business. That is about as far as we tend to go with rates, but in terms of absolute rate setting, I cannot comment, other than to say that, whenever you make a change to the tax system, it adds a measure of complexity and confusion.
Q 4 The balance of the national insurance fund has continued to fall sharply in spite of the modest economic recovery. Is not legislating to prevent even small rises in national insurance contributions throughout the Parliament irresponsible under those circumstances?
John Whiting: The national insurance fund is obviously something that I am aware of, and how it operates is an interesting question. It is certainly something that we, with our current review, want to look at. What I can say is that we want to examine how much people really understand about how the fund operates and whether they really appreciate, in effect, what national insurance pays for and where it goes. For me to come up with an opinion about where the fund sits at the moment is a little premature. However, I can say that just how it operates is something we want to examine, and, as I say, there is the fairly crucial question of how much people really understand about national insurance and how it operates.
Q 18 What I am trying to get at, Minister, is that there will have to be some sort of transition period for working-class people. We in this Committee are trying to find out whether that will be a possibility. During the transition period, it looks as if national insurance contribution thresholds will be moved.
Mr Gauke: Just to clarify the point I made a moment ago, there is an area relating to thresholds, in terms of the link with the upper earnings limit in the Bill. As for the vote in the House of Lords yesterday, the Chancellor will set out his response to that in the autumn statement.
Q 19 The balance of the national insurance fund has continued to fall sharply in spite of the modest economic recovery. Is not legislating to prevent even small rises in national insurance contributions throughout this Parliament irresponsible in such circumstances?
Mr Gauke: No. Our commitments as a Government—our additional expenditure on the NHS, for example, and the triple lock guarantee for the state pension—are clear statements that we will fulfil. If it is necessary to top up the national insurance fund, we will do that to fulfil our objectives of increasing spending on the NHS and meeting our obligations on the state pension. Ultimately, meeting those objectives depends on the state of the economy and the public finances, not on the position of the national insurance fund.