UK Parliament / Open data

National Insurance Contributions (Rate Ceilings) Bill

Debate on bills on Tuesday, 15 September 2015, in the House of Commons, led by Harriett Baldwin. The answering member was Baroness Keeley.
Second reading. Agreed to on question. Programme motion. Agreed to on question.

About these Parliamentary proceedings

Reference

599 cc925-963 

Session

2015-16

Department

Treasury

Legislative stage

Second reading

Procedure

Programme motions

Chamber / Committee

House of Commons chamber
National Insurance Contributions (Rate Ceilings) Bill 2015-16
Tuesday, 14 July 2015
Bills
House of Commons

Proceeding contributions

Harriett Baldwin | 599 c926 (Link to this contribution)

I beg to move, That the Bill be now read a Second time.

This Bill implements our manifesto ...

Lady Hermon | 599 c926 (Link to this contribution)

I am sorry to intervene so early in the Minister’s speech, but for the sake of clarity will she e...


Show all contributions (152)
Harriett Baldwin | 599 c926 (Link to this contribution)

My remarks will be so short that hon. Members will need to intervene quickly with their points of...

Debbie Abrahams | 599 c926 (Link to this contribution)

Can the Minister clarify what assessment she has made of the number of self-employed people who m...

Harriett Baldwin | 599 c926 (Link to this contribution)

We are very pleased that we are backing those who want to take a chance, start their own business...

Jim Cunningham | 599 c927 (Link to this contribution)

Has the Minister done an impact assessment on public services—for example, the impact that the Bi...

Harriett Baldwin | 599 c927 (Link to this contribution)

I am delighted to hear the first bid from the Opposition not to freeze national insurance for emp...

Jim Cunningham | 599 c927 (Link to this contribution)

The Minister should not twist my words. I asked her about the impact of the Bill.

Harriett Baldwin | 599 c927 (Link to this contribution)

Of course, the impact of freezing national insurance for employers and employees is that througho...

Baroness Keeley | 599 c927 (Link to this contribution)

The Minister’s team might helpfully do something about the fact that if one searches online for t...

Harriett Baldwin | 599 c927 (Link to this contribution)

I thank the hon. Lady for her sensible suggestion. I know that those who put together the impact ...

Rehman Chishti | 599 c927 (Link to this contribution)

I have businesses in my constituency that work hard and do the right thing. They do not want to b...

Harriett Baldwin | 599 c927 (Link to this contribution)

I thank my hon. Friend for making that excellent point. The Government want to back small busines...

Debbie Abrahams | 599 c927 (Link to this contribution)

May I press the Minister on the point I made in my earlier intervention, which she did not actual...

Harriett Baldwin | 599 c927 (Link to this contribution)

When one starts out in business, it is often the case that one earns a small amount, but it is th...

Andrew Stephenson | 599 c928 (Link to this contribution)

Freezing NI is important for my constituents, many of whom are low wage earners and have benefite...

Harriett Baldwin | 599 c928 (Link to this contribution)

I certainly agree that the Government are keen to take steps to back an economy that continues to...

Andrew Gwynne | 599 c928 (Link to this contribution)

Surely the Minister has not forgotten that in the lifetime of the previous Parliament—from 2010 t...

Harriett Baldwin | 599 c928 (Link to this contribution)

That is an extraordinary line of attack. The Government have nearly doubled the personal allowanc...

Mark Spencer | 599 c928 (Link to this contribution)

Will the Minister comment on how successful the previous Government were in getting people into w...

Harriett Baldwin | 599 c928 (Link to this contribution)

That gives me a welcome opportunity to state that every Labour Government in history has left off...

Simon Hoare | 599 c928 (Link to this contribution)

My hon. Friend may be ruing her invitation to Members to intervene. In a constituency such as min...

Harriett Baldwin | 599 c928 (Link to this contribution)

My hon. Friend’s point is well made, because in North Dorset and around the country it is the sma...

Kevin Foster | 599 c929 (Link to this contribution)

One of the problems with national insurance contributions for employers is that they are a direct...

Harriett Baldwin | 599 c929 (Link to this contribution)

My hon. Friend is right. The Bill’s measures strongly back business and other employers, many of ...

Rehman Chishti | 599 c929 (Link to this contribution)

The Bill is very much welcome and goes hand-in-hand with what the Government are doing in other a...

Harriett Baldwin | 599 c929 (Link to this contribution)

My hon. Friend is absolutely right. This is part of a package of measures the Chancellor announce...

Andrew Murrison | 599 c929 (Link to this contribution)

The Office of Tax Simplification has been asked to look at proposals to merge income tax and nati...

Harriett Baldwin | 599 c929 (Link to this contribution)

My hon. Friend is correct. In the summer Budget, the Chancellor announced a consultation on behal...

James Cartlidge | 599 c929 (Link to this contribution)

On a point of clarification—this may be a bit cheeky—I take it that we could reduce national insu...

Harriett Baldwin | 599 cc929-930 (Link to this contribution)

That is not a cheeky question; that is a very sensible question. It is indeed the case that we wi...

Baroness Keeley | 599 c930 (Link to this contribution)

As the Minister described, the Bill provides for the Government’s commitment, as set out in their...

Harriett Baldwin | 599 c930 (Link to this contribution)

Will the hon. Lady confirm that in her party’s manifesto, on which she just stood, there was a si...

Baroness Keeley | 599 cc930-1 (Link to this contribution)

I will come on to my party’s manifesto commitments in a very short while. I do not think it is he...

Simon Hoare | 599 c931 (Link to this contribution)

Unlike the hon. Lady, not all Government Members are obsessed with the new leader of the Labour p...

Baroness Keeley | 599 c931 (Link to this contribution)

Government Members should stop going back in time. I have just referred to the fact that the Prim...

Natascha Engel | 599 c931 (Link to this contribution)

Order. The hon. Lady is using the term “you” which refers to the occupant of the Chair, not Gover...

Baroness Keeley | 599 cc931-2 (Link to this contribution)

Thank you, Madam Deputy Speaker, that is really helpful. It is sometimes easy to forget.

I ...

Andrew Stephenson | 599 c932 (Link to this contribution)

I hear what the hon. Lady is saying—she believes the Bill is purely a gimmick—but would she not a...

Baroness Keeley | 599 c932 (Link to this contribution)

In a minute, I will record how other commentators also think it is a gimmick. I have said we are ...

Lucy Frazer | 599 c932 (Link to this contribution)

I am a little confused. The hon. Lady has said that she supports the policy but is now quoting a ...

Baroness Keeley | 599 c932 (Link to this contribution)

The hon. Lady confuses our not opposing a pledge that we made first on 25 March—it is our pledge,...

Baroness Keeley | 599 c933 (Link to this contribution)

No.

Paul Johnson believes that the tax lock could rule out sensible tax reforms. That is th...

Baroness Keeley | 599 c933 (Link to this contribution)

I can assure the hon. Gentleman that Opposition Members do. It read:

“No one can see into t...

Harriett Baldwin | 599 c933 (Link to this contribution)

So it is not a gimmick then, but welcome certainty for families and business.

Baroness Keeley | 599 cc933-4 (Link to this contribution)

The hon. Lady is not listening.

The Financial Times leader, to which I referred earlier, sa...

Harriett Baldwin | 599 c934 (Link to this contribution)

Madam Deputy Speaker, may I seek your guidance about whether we ought to be discussing something ...

Natascha Engel | 599 c934 (Link to this contribution)

The hon. Lady is experienced enough to know that if she wishes to raise a point of order, she can...

Baroness Keeley | 599 c934 (Link to this contribution)

I think that the whole range of the tax regime and national insurance is under discussion today.<...

Christopher Pincher | 599 c934 (Link to this contribution)

The hon. Lady says that the Opposition will not oppose this welcome measure. Does that mean they ...

Baroness Keeley | 599 c934 (Link to this contribution)

As I understand it, there will not be a vote because it will not be opposed, but I cannot speak f...

Mark Spencer | 599 c934 (Link to this contribution)

The hon. Lady keeps referring to the measure as a gimmick. It would be helpful if she could expla...

Baroness Keeley | 599 c934 (Link to this contribution)

I do not think that the hon. Gentleman is listening. I know that Conservative Members often sit t...

Andrew Murrison | 599 c935 (Link to this contribution)

I can understand why the shadow Minister does not want to comment on her new leader’s position, b...

Baroness Keeley | 599 c935 (Link to this contribution)

We are not signalling any change of position. It is amusing to hear this from Conservative Member...

Baroness Keeley | 599 c935 (Link to this contribution)

No, I will not.

The tax lock restricts the Government’s ability to respond to unexpected ec...

Andrew Gwynne | 599 c935 (Link to this contribution)

Is it not indicative of the level of trust in politics and politicians generally, but specificall...

Baroness Keeley | 599 c935 (Link to this contribution)

Indeed. I agree with my hon. Friend and I thank him for raising that point. I think that Minister...

Baroness Keeley | 599 cc935-6 (Link to this contribution)

No, I have nearly finished.

As I have argued, the Bill provides no protection for millions ...

Lady Hermon | 599 c936 (Link to this contribution)

I am most grateful to the hon. Lady for allowing me to intervene. She will know that the Bill ext...

Baroness Keeley | 599 c936 (Link to this contribution)

Yes, it is. I am the shadow Treasury spokesperson responsible for the Bill today. [Interruption.]...

Kit Malthouse | 599 cc936-7 (Link to this contribution)

It is often forgotten that companies do not actually pay tax. All they do is collect their tax on...

Roger Mullin | 599 c937 (Link to this contribution)

The hon. Gentleman talks about the need for certainty and explains why he believes that the Bill ...

Kit Malthouse | 599 c937 (Link to this contribution)

The hon. Gentleman will have to ask my right hon. Friend the Chancellor of the Exchequer that que...

Christopher Pincher | 599 c937 (Link to this contribution)

My hon. Friend is generous in giving way. The question of certainty has been raised and eloquentl...

Kit Malthouse | 599 c937 (Link to this contribution)

My hon. Friend has made a strong point. During the debate on the referendum concerning our possib...

Angus Brendan MacNeil | 599 c937 (Link to this contribution)

I can tell the hon. Gentleman that it was certainly worth two Lords in the Lords.

In fact, ...

Kit Malthouse | 599 c938 (Link to this contribution)

These things always involve a balance. A point that I have often made in another elected chamber—...

Mark Spencer | 599 c938 (Link to this contribution)

Does my hon. Friend agree that taking on staff constitutes a large responsibility for employers? ...

Kit Malthouse | 599 c938 (Link to this contribution)

That is exactly the point that I am making. Businesses are much more likely to employ people if t...

Rehman Chishti | 599 c938 (Link to this contribution)

Of course I agree with what my hon. Friend says about certainty and clarity. Does he not think th...

Kit Malthouse | 599 cc938-9 (Link to this contribution)

My hon. Friend is absolutely right. It must be said that the Brown years injected an enormous sen...

Andrew Stephenson | 599 c939 (Link to this contribution)

I applaud what my hon. Friend has said about stability and certainty in the business community, e...

Kit Malthouse | 599 c939 (Link to this contribution)

My hon. Friend has made a powerful point. Some of the sectors that are the most critical to the U...

Kelvin Hopkins | 599 c939 (Link to this contribution)

The hon. Gentleman talks about inflation as if it were the danger, but the real danger at the mom...

Kit Malthouse | 599 cc939-940 (Link to this contribution)

The hon. Gentleman may have a point at the current time, but some of us are of an age to remember...

Stewart Hosie | 599 c940 (Link to this contribution)

As the Minister said, the Bill will prevent any increase in the current rates of class 1, class 1...

Kelvin Hopkins | 599 c940 (Link to this contribution)

The hon. Gentleman mentioned VAT and the lock that the Government propose. Does he agree it would...

Stewart Hosie | 599 cc940-1 (Link to this contribution)

That is the kind of thing any Opposition politician should say about any set of Tory policy decis...

Angus Brendan MacNeil | 599 c941 (Link to this contribution)

Of the options my hon. Friend has given, may I go for option three, which means the Government wi...

Stewart Hosie | 599 c941 (Link to this contribution)

My hon. Friend is right. Harking back to 2009 and the Fiscal Responsibility Bill, the then Chance...

Lord Jackson of Peterborough | 599 c941 (Link to this contribution)

The hon. Gentleman must be vying for the 2015 Caledonian brass neck award. On the arc of prosperi...

Stewart Hosie | 599 cc941-2 (Link to this contribution)

The £1.5 trillion black hole which is the UK national debt is of rather more significance than an...

Kelvin Hopkins | 599 c942 (Link to this contribution)

I have a great deal of sympathy with what the hon. Gentleman has been saying. He mentioned the ta...

Stewart Hosie | 599 cc942-4 (Link to this contribution)

It is certainly the case that during the downturn the decision to remove the 50p rate of tax was ...

Lucy Frazer | 599 cc944-5 (Link to this contribution)

The Bill is about low taxation. Low taxation is critical to encouraging our businesses and our ec...

Helen Goodman | 599 c945 (Link to this contribution)

I am pleased to take part in this debate, even though it is on a gimmick, and we are not so used ...

James Cartlidge | 599 c945 (Link to this contribution)

If we reach that point and the provisions have to be repealed, that will be a public act. This is...

Helen Goodman | 599 cc945-6 (Link to this contribution)

I am afraid that I do not accept that. This is purely weak willed on the part of the Chancellor. ...

Andrew Gwynne | 599 c946 (Link to this contribution)

Does my hon. Friend agree that there is another reason to believe that this is purely a gimmick f...

Helen Goodman | 599 c946 (Link to this contribution)

My hon. Friend makes an astute point. That is one of the things that is going on here.

The ...

Lucy Frazer | 599 c946 (Link to this contribution)

I heard the shadow Minister say that this was Labour party policy. What does the hon. Member for ...

Helen Goodman | 599 cc946-7 (Link to this contribution)

As I have said, I would not have made a commitment on the upper earnings limit. That is just not ...

David Gauke | 599 c947 (Link to this contribution)

May I seek some clarity? The hon. Lady said that she would not make a commitment on the upper ear...

Helen Goodman | 599 c947 (Link to this contribution)

I am saying that it would be perfectly reasonable to consider that, rather than pre-committing in...

Kit Malthouse | 599 c947 (Link to this contribution)

I think I am grateful to the hon. Lady for her support earlier. That was kind of her. Would she a...

Helen Goodman | 599 c947 (Link to this contribution)

Well, it might or it might not, depending on the circumstances.

This quest for certainty is...

Helen Goodman | 599 c947 (Link to this contribution)

I shall give way to the hon. Gentleman from the Scottish National party.

Angus Brendan MacNeil | 599 c947 (Link to this contribution)

In any debate about taxes, it is instructive to look at what the OECD tells us about global tax-t...

Helen Goodman | 599 c948 (Link to this contribution)

The hon. Gentleman knows the way to my heart; he knows that I am half Danish and that I would muc...

Christopher Pincher | 599 c948 (Link to this contribution)

The hon. Lady is a doughty individualist. I recall her calling me up a few months ago, when she w...

Helen Goodman | 599 c948 (Link to this contribution)

That is rather a silly remark. If the Chancellor makes decisions on tax, we can question him abou...

Huw Merriman | 599 c948 (Link to this contribution)

I warmly support the provisions in the Bill to enshrine the level of contributions for national i...

Huw Merriman | 599 c948 (Link to this contribution)

If you disagree, I will take the intervention.

Callum McCaig | 599 c948 (Link to this contribution)

I am disagreeing. Certainty is being provided in one narrow aspect of business taxation. As my pa...

Huw Merriman | 599 cc948-9 (Link to this contribution)

Not at all. Perhaps I can come on to deal with that by considering the macro levers the Governmen...

Kwasi Kwarteng | 599 c949 (Link to this contribution)

Does my hon. Friend feel that this legislation chimes in well with what we saw from the last Gove...

Huw Merriman | 599 c949 (Link to this contribution)

I absolutely agree with that. I recall that five years ago there were howls of derision when the ...

Rehman Chishti | 599 c949 (Link to this contribution)

Our commitment to creating more jobs and bringing more jobs to our country goes hand in hand with...

Huw Merriman | 599 cc949-950 (Link to this contribution)

I fully agree with that point and I think I can link it to the one made previously by the SNP. Th...

Rehman Chishti | 599 c950 (Link to this contribution)

My hon. Friend talks about taxes rising. The Bill provides certainty, whereas rising taxes cause ...

Huw Merriman | 599 c950 (Link to this contribution)

I agree completely. The cut in corporation tax allowed this Government to justify the increase in...

Baroness Keeley | 599 c950 (Link to this contribution)

Will the hon. Gentleman give way?

Huw Merriman | 599 c951 (Link to this contribution)

Perhaps I can make a little progress, but then I will of course give way.

The Government co...

Kelvin Hopkins | 599 cc951-2 (Link to this contribution)

I apologise, Madam Deputy Speaker, for having to leave the debate for a short while, but I manage...

Kwasi Kwarteng | 599 c952 (Link to this contribution)

We are wandering rather further from the topic of the debate than I would like, but how would the...

Kelvin Hopkins | 599 c952 (Link to this contribution)

I can only refer the hon. Gentleman to the excellent article by the economist Ben Chu, which goes...

Jonathan Edwards | 599 c952 (Link to this contribution)

The hon. Gentleman is completely right to say that this is purely a gimmick by the Government. Th...

Kelvin Hopkins | 599 c952 (Link to this contribution)

That would certainly be one way of dealing with it, but I think that not cutting tax credits, whi...

Graham Stuart | 599 c952 (Link to this contribution)

The hon. Gentleman, as ever, is gracious in giving way. He suggests that the Labour Government we...

Kelvin Hopkins | 599 cc952-3 (Link to this contribution)

I have to agree with the hon. Gentleman, but the great deregulation occurred in 1979 with the aba...

Graham Stuart | 599 c953 (Link to this contribution)

The hon. Gentleman must have seen the figures. Every time the higher rate of tax was cut, the amo...

Kelvin Hopkins | 599 c953 (Link to this contribution)

I thank the hon. Gentleman for that intervention, but the fact is that successive Governments hav...

Simon Hoare | 599 c953 (Link to this contribution)

The hon. Gentleman obviously has the inside track on the voice of the City—he has referenced lunc...

Kelvin Hopkins | 599 c954 (Link to this contribution)

I must say that I have not had lunch in the City recently. Indeed, my contacts with City people h...

Kwasi Kwarteng | 599 c954 (Link to this contribution)

I am pleased to follow the hon. Member for Luton North (Kelvin Hopkins), although I felt as thoug...

Kwasi Kwarteng | 599 c954 (Link to this contribution)

I am happy to give way this once.

Kelvin Hopkins | 599 c955 (Link to this contribution)

It was a temporary limit imposed on holidaymakers by Harold Wilson, but most had no problem spend...

Kwasi Kwarteng | 599 c955 (Link to this contribution)

I am glad to hear that everything was all right because it was Harold Wilson who imposed the limi...

Iain Stewart | 599 cc955-6 (Link to this contribution)

It is a pleasure to make a short contribution on this important Bill, which I very much welcome. ...

Michael Ellis | 599 cc956-7 (Link to this contribution)

This Bill is short but very important. It is a commitment not to increase national insurance, whi...

Christopher Pincher | 599 c957 (Link to this contribution)

I should like briefly to add my voice in support of this welcome Bill. Having listened to the hon...

Simon Hoare | 599 cc957-8 (Link to this contribution)

I am delighted to speak in support of the Bill. A number of colleagues have spoken of the need fo...

Paul Maynard | 599 c958 (Link to this contribution)

A brief Bill deserves a brief speech. I am pleased to see the shadow Minister back in her place. ...

Lindsay Hoyle | 599 c958 (Link to this contribution)

We now come to the Front-Benchers. With the leave of the House, I call the shadow Minister to spe...

Baroness Keeley | 599 cc958-960 (Link to this contribution)

Thank you, Mr Deputy Speaker. I thank the House for giving me leave to speak again.

We have...

David Gauke | 599 cc959-961 (Link to this contribution)

It is a great pleasure to respond to a lively debate. I thank all those who have contributed, not...

Baroness Keeley | 599 c961 (Link to this contribution)

I am astonished that the Minister can talk about things that happened in the past and not reflect...

David Gauke | 599 c961 (Link to this contribution)

For those of us who were debating such matters at the time, the state of the public finances, and...

Baroness Keeley | 599 c961 (Link to this contribution)

My points are about the way the public feel about broken pledges. This gimmick of a tax lock mean...

David Gauke | 599 cc961-2 (Link to this contribution)

We are underlining our commitment not to increase the rate of class 1 NICs by introducing this Bi...

Baroness Keeley | 599 c962 (Link to this contribution)

The Minister seems to forget that I read out to him a list of various pledges on policy that the ...

David Gauke | 599 cc962-3 (Link to this contribution)

I can understand why the shadow Minister does not want to defend the position of the current lead...

Kelvin Hopkins | 599 c963 (Link to this contribution)

I would be happy if the Danes lowered their VAT rate, but can the Minister tell us what Danish in...

David Gauke | 599 c963 (Link to this contribution)

I do not have all the numbers in front of me, but I take it from the hon. Gentleman’s remarks tha...

Back to top