Oral Answers to Questions

Gagan Mohindra Excerpts

Tuesday 1st July 2025 Commons Chamber

[Darren Jones]

I thank my hon. Friend for his question, and I extend the thoughts of the House to his constituents and the communities that he represents. He will know that I have always kept the service and sacrifices of the mining communities in my mind, both in opposition when campaigning for changes to the mineworkers’ pension scheme, which this Government implemented at the last Budget, and now in considering proposals from the BCSSS. I will be looking at those issues in more detail over the summer, and I hope to say more in the autumn.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

11. What assessment she has made of the potential impact of the increase in employer national insurance contributions on businesses.

[The Chancellor of the Exchequer (Rachel Reeves)]

The Government protected the smallest businesses from changes to national insurance by increasing the employment allowance from £5,000 to £10,500. That means that this year 865,000 employers will pay no national insurance contributions at all, and more than half will either gain or see no change to their national insurance contributions.

[Mr Mohindra]

Given the recent trio of U-turns, this Government have demonstrated that they are keen to change their minds as well as to create new multibillion-pound black holes. Will the Chancellor do the right thing and U-turn on the increase in national insurance contributions, to provide businesses with a much-needed boost in the sluggish economy that she has created?

[Rachel Reeves]

It is a bit rich for anyone in the Conservative party to mention black holes, after the one that they left for us to clear up. The hon. Gentleman will have seen the Lloyds business barometer, which has recently been published and shows that business confidence is now at a nine-year high, led by increases in confidence in retail and manufacturing. That report referenced the impact of the spending review on boosting business confidence—a recognition that this Government are backing Britain and backing Britain’s businesses.