New Clause 1

Part of National Insurance Contributions Bill – in a Public Bill Committee at 10:00 am on 9 December 2010.

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Photo of David Gauke David Gauke The Exchequer Secretary 10:00, 9 December 2010

I note the rather gloomy assessment by the hon. Gentleman. I am sure that if he made a representation to the OBR, it might be persuaded by his economic expertise. However, the fact is that the independent OBR has said that the economy will continue to grow throughout the next few years.

The Government are committed to increasing the transparency of tax policy making and of the tax system more generally. To that end I am happy to undertake to provide, to the House and to the public, updates after the end of the tax year on the operation of the scheme, including information at regional level,  although the precise requirements set out in new clause 1 could raise legal issues, for example on confidentiality of taxpayer data.

New clause 6 would require the Treasury to conduct a review of the holiday no later than six months after Royal Assent, considering specifically the case for extension to certain types of existing business. However, the passing of time will make no difference to the policy objective of targeting support on those considering setting up new businesses. Nor will it make a difference to the objective of targeting assistance on those countries and regions most dependent on public sector employment, as opposed to “employment sector” as suggested by new clause 1. Indeed, it is unclear what is intended by “employment sector”.

The impact assessment commits the Government to reviewing the policy as evidence becomes available, and I am happy to repeat that commitment. Formal evaluations will be disseminated in the usual way. With these reassurances, I hope that the right hon. Gentleman will withdraw the new clause.