National Insurance Contributions Bill

As this may be my last appearance at the Dispatch Box this afternoon, I thank the noble Baroness, Lady Noakes, for her contributions. I thank, too, the noble Lord, Lord Newby, and, in his absence, the noble Lord, Lord Skelmersdale. We have had a constructive run through the measure and I am sure that we shall return to parts of it at later stages. The amendment would put in place a sunset provision to bring the Act to an end two years after it is enacted unless a statutory instrument using the affirmative procedures is placed before Parliament seeking its continuation. One purpose of the Bill is to act as a deterrent to those who are seeking to avoid tax and national insurance on rewards of employment. If employers were to desist from contrived schemes to avoid paying national insurance, the powers in the Bill would seldom be used. The Bill provides a framework for decisive action against tax and national insurance avoidance. If we were to agree to a sunset clause as suggested, it would create an incentive for employers to continue to use avoidance schemes in the hope that the Act is not approved to continue after two years. It would be an incentive not to abandon avoidance but possibly to defer it. It would create uncertainty for employers about the Government’s resolve to put an end to avoidance. We see no advantage in putting a time limit on the Bill, as the trigger for use of its powers is dependent upon retrospective tax measures. Every measure introduced that has a retrospective effect will need to be approved by both Houses using the affirmative procedure. I hope that, on the basis of that, the noble Baroness will feel able to withdraw the amendment.