Oral Answers to Questions

Debate between David Gauke and Peter Luff

Tuesday 2nd September 2014 Commons Chamber

[Sir Peter Luff (Mid Worcestershire) (Con)]

15. What estimate he has made of the potential effect of a rise in national insurance on employment rates and take-home pay.

[The Financial Secretary to the Treasury (Mr David Gauke)]

This Government inherited plans to increase the employer’s national insurance contributions rate by 1%. We largely reversed the negative effect of that by raising the employer threshold by £21 a week above indexation. We have also introduced the employment allowance. From April 2015, we will abolish employer’s national insurance contributions for under 21-year-olds, helping to support jobs for almost 1.5 million young people currently in employment.

[Sir Peter Luff]

It cannot be said too often: higher national insurance is a tax on pay and a tax on jobs. My hon. Friend will therefore understand my delight when the Government introduced the £2,000 employment allowance—he referred to it in his answer—which will help new businesses in particular to create new jobs. May I tempt my hon. Friend to say what further measures the Government plan to take to reduce the tax burdens on businesses and so increase employment in this country?

[Mr Gauke]

As I mentioned earlier, we have the removal of national insurance contributions for under-21s next year. I entirely agree with my hon. Friend about the impact of higher employer’s national insurance contributions, and I have to say that one of the risks that the economy faces is a future Labour Government putting up employer’s national insurance contributions.

Finance Bill

Debate between David Gauke and Peter Luff

Wednesday 2nd July 2014 Commons Chamber

[Mr Gauke]

I am delighted to hear of the benefits that my hon. Friend’s constituency and the Buxton opera house will experience.

[Sir Peter Luff (Mid Worcestershire) (Con)]

Circus is a performing art invented in the United Kingdom and it provides many children with their introduction to the performing arts and leads them to a love of theatre. May I therefore welcome my hon. Friend’s decision to include circuses in those areas covered by the tax relief in new clause 5? The travelling circus industry welcomes that decision, which is already leading directly to new investment in travelling circuses.

[Mr Gauke]

Again, I am delighted to hear that. My hon. Friend lobbied us and made representations on behalf of his constituents for the inclusion of circuses. As a consequence of the consultation process and listening to the points raised by my hon. Friend and others, I am delighted that circuses will benefit from this tax relief.