New Clause 2 - Review of effects of frozen thresholds

National Insurance Contributions (Reduction in Rates) (No. 2) Bill – in the House of Commons at 5:15 pm on 13 March 2024.

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Votes in this debate

“The Treasury must lay before the House of Commons within three months of the passing of this Act a report which sets out its forecasts of the change to the number of people paying national insurance contributions as a result of the thresholds for payment of national insurance remaining frozen over the period 2023/24 to 2027/28, rather than rising in line with CPI.”—(Mr Carmichael.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

Division number 93 National Insurance Contributions (Reduction in Rates) (No. 2) Bill Committee: New Clause 2

Aye: 167 MPs

No: 290 MPs

Aye: A-Z by last name

Tellers

No: A-Z by last name

Tellers

The Committee divided: Ayes 169, Noes 293.

Question accordingly negatived.

The Deputy Speaker resumed the Chair.

Bill reported, without amendment.

Bill, not amended in the Committee, considered.

Third Reading

Photo of Nigel Huddleston Nigel Huddleston The Financial Secretary to the Treasury 5:58, 13 March 2024

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

I am grateful to all right hon. and hon. Members who have participated throughout the Bill’s passage today, and to you, Madam Deputy Speaker, and the other Deputy Speakers for skilfully guiding us through the process. I also thank all the Clerks, all stakeholders and all the officials for their work on bringing the Bill to the Floor and delivering tax cuts to the people of the United Kingdom. I commend the Bill to the House.

Photo of James Murray James Murray Shadow Financial Secretary (Treasury) 5:59, 13 March 2024

As I have made clear throughout the Bill’s consideration, Labour supports the national insurance reductions that it seeks to deliver. I am disappointed, however, that Conservative MPs voted to block our new clause. Since the Chancellor announced the Conservatives’ plan to abolish national insurance contributions last week, Ministers have refused again and again—including today—to say how that will be funded or what impact it will have. We believe people deserve to know what impact the Conservatives’ £46 billion unfunded tax plan will have on pensioners and their pensions, on public services and on the health of our economy. Our new clause would have required the Government to come clean and be honest with the British public. Instead, Ministers have decided to vote against us and stick to their reckless and irresponsible unfunded tax plan.

It is still not clear how this reckless commitment to abolishing national insurance will be funded or what impact it will have on pensioners, pensions, public services, borrowing or the state of our economy. But what is clearer than ever is that the Conservatives are the party of reckless, irresponsible, unfunded tax plans that threaten our economy, our public services and the finances of households across the country. Only Labour will bring stability and the responsible approach our economy needs and only a general election will give the British people the chance to vote for change.

Photo of Kirsty Blackman Kirsty Blackman Shadow SNP Spokesperson (Cabinet Office) 6:00, 13 March 2024

We do not support this change. This cut disproportionately benefits those earning the most. We in the SNP recognise the value that the public sector provides. We believe it should be properly funded to deliver our vital public services, and we do not believe that they can cope with more cuts on the back of 14 years of austerity and the trials of Brexit and the pandemic. We want excellent public services for all, and we are not scared to make that absolutely clear.

Question put, That the Bill be now read the Third time.

Division number 94 National Insurance Contributions (Reduction in Rates) (No. 2) Bill: Third Reading

Aye: 293 MPs

No: 42 MPs

Aye: A-Z by last name

Tellers

No: A-Z by last name

Tellers

The House divided: Ayes 293, Noes 41.

Question accordingly agreed to.

Bill read the Third time and passed.