National Insurance Contributions (Secondary Class 1 Contributions) Bill

Jim Dickson Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Jim Dickson (Dartford) (Lab)]

It is real pleasure to rise in support of the Bill and to follow excellent speeches from Labour Members setting out eloquently why the Bill is necessary. As the House has dissected at length in recent weeks in the debates following the Budget and last week’s debate on the Finance Bill, which I was happy to take part in, the public finances that the Government have inherited are clearly in an incredibly parlous state—that is probably the politest description that anyone has used today. I want to outline briefly why the Bill is necessary and how it will protect and promote small businesses across our country.

The Bill forms part of a long-term plan to fix the foundations of our public expenditure and provide much-needed support to public services, which we must have if all our constituents are to receive the support they need. The measures in the Bill on national insurance cannot be seen in isolation; they are part of a range of actions announced at the Budget, including abolishing non-dom tax loopholes, extending the levy on oil and gas companies, and reforming stamp duty land tax.

The Bill represents not the easy choice so often taken by the Conservatives, who self-evidently failed to fix the roof while the sun was shining, while still putting up taxes to their highest levels for 70 years. It represents the tough choices that are necessary to get us back on an even footing. The measures contained in the Bill are in large part how the new Government will begin to address the need to cut NHS waiting times, which we all know were at record highs before the devastation caused by the covid-19 pandemic, as well as the crises in our courts, local government, social care and our schools among other areas.

I want to focus in particular on how small businesses are protected in this legislation as well as more broadly on the measures announced at the Budget. Small businesses are the lifeblood of our economy across our country, and particularly so in my constituency. One of the great pleasures of the last few months has been to visit and meet the people who run small businesses across Dartford, in Swanscombe, Greenhithe, Longfield and other places.

I want to quote the Federation of Small Businesses, since it has been mentioned in the debate. In response to the Budget, and recognising that it was a tough Budget, it stated:

“Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear.”

[Ben Obese-Jecty]

You state—

[Ben Obese-Jecty]

Sorry, Madam Deputy Speaker. The hon. Member stated that he has spoken to constituents and many small businesses across his constituency, but he quoted the Federation of Small Businesses. Could we hear from businesses that he has spoken to as to how this measure benefits them?

[Jim Dickson]

The businesses in my constituency feel that the most important thing is to have a good trading environment, and I am happy to report that they feel that if we have support for public services and economic growth, the trading environment will be right for them.

The FSB also said:

“Against a challenging backdrop, today’s Budget shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates—prioritising everyday entrepreneurs working in local communities in all parts of the country.”

That is thanks to the choice that the Labour Government have made to protect small businesses by increasing the employment allowance, as has been said, and expanding it to all eligible employers.

It must also be seen alongside the Government’s plans to rebalance business rates and new measures announced in September, which I very much welcome, to support small businesses and the self-employed by tackling the scourge of late payments, which, according to the Smart Data Foundry, cost small and medium-sized enterprises £22,000 a year on average and, according to research by the Federation of Small Businesses, lead 50,000 businesses to close each year. Taken on balance, the measures to assist small businesses and the measures to invest in public services make this a Budget that is positive for our country and will help to rebuild our economy.

Finance Bill

Jim Dickson Excerpts

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Mel Stride]

That is an extremely astute observation. The prophecy is that things will get tougher further down the line. It will then be the case that this Government took decisions that left us in a weak and vulnerable position to withstand them. Why has this happened? The Labour party has very little business experience. Very few Members on the Government Front Bench have started up a business or grown a company in any significant manner.

[Jim Dickson (Dartford) (Lab)]

Will the right hon. Gentleman give way?

[Mel Stride]

I will give way to the hon. Gentleman. Perhaps he is an example of somebody who has done just that.

[Jim Dickson]

If the right hon. Gentleman and his colleagues are against all the revenue-raising measures in the Budget, perhaps he could explain which of the many investments in the health service, roads, the justice system and schools he and his colleagues would cut?

[Mel Stride]

It is not a binary decision like that. The hon. Gentleman is clever enough—[Interruption.] I am sorry, but I will not disrespect him by claiming that he truly believes that. Had the Government brought forward a Budget that would have grown the economy, as the Conservatives would have done, the Government would have more money. Had Labour grasped the nettle of welfare reform, as we did when we were in office, and we had very clear plans in our manifesto for a saving of £12 billion a year, the Government would not have to go around caning companies, beating up on pensioners and so on as an alternative. There are better ways of doing things, and we had a much better way.

--- Later in debate ---

[Jim Dickson (Dartford) (Lab)]

I am grateful for the opportunity to contribute to this very important debate as we move to put the measures announced at the Budget on the statute book but, first, I add my congratulations to my hon. Friend the Member for South Derbyshire (Samantha Niblett) on a superb maiden speech, demonstrating the commitment and expertise that we are lucky to have on the Government Benches, and the House is lucky to have as a whole.

I suspect that this was not the Budget that my right hon. Friend the Member for Leeds West and Pudsey (Rachel Reeves) envisaged as her first as Chancellor, but it was the one that was needed once the economic inheritance received by this Government became fully understood. I want to touch on the very difficult financial situation that this Government have inherited, and what difference the measures announced in the Budget will make to residents living in my constituency.

We should be clear about what the inheritance from the Conservative party was: an economy that, over the past 14 years, has seen productivity and wages flatlining, leaving British families significantly poorer than those in France and Germany; and a country exposed to fossil fuel markets, which led directly to the worst cost of living and energy bills crises in generations. Whatever the Conservatives may like to say to wriggle out of that inestimable fact, they left a £22 billion black hole in the public finances, with no plan to fix it and—this is the worst part—unfeasible departmental spending targets stretching into future years.

Our response of capital gains tax rises, air passenger duty and agricultural property relief undoubtedly falls on those with the broadest shoulders who are most able to bear those increases.

[Harriet Cross]

May I clarify whether the hon. Member believes that the farmers making on average less than £45,000 year, and the 25% making less than £20,000 a year, are those with the broadest shoulders?

[Jim Dickson]

I thank the hon. Lady for that intervention. We are very clear: the numbers from HMRC show that very few of the sorts of farms that she is referring to will be affected. Actually, it said everything to me that the person leading the march last week had boasted that he had spent £4.25 million on a farm in order to avoid inheritance tax.

This was a Budget to reset our finances after years of chaos, with difficult but necessary decisions—decisions we have not dodged, unlike the previous Government. This Labour Government were elected to fix the foundations of our economy and to begin to rebuild the public services that people across our country—including my residents in Dartford, whom I am privileged to represent in this place—really need. The measures in the Bill will rebalance the tax system, protecting working people and raising the crucial revenue so desperately needed for our public services at a time when their performance is unfortunately at a historic low.

What does this Budget mean for people living in my constituency, in Dartford, Swanscombe, Greenhithe and Ebbsfleet? People living across my constituency rely on their excellent district general hospital at Darent Valley, which is full of brilliant, hard-working staff who do their absolute best; however, after 14 years of a Conservative Government, capacity in the hospital has just not kept up with need. Dartford borough was the second fastest growing local authority area in the period covered by the last census, thanks largely to the development of Ebbsfleet Garden City, but investment in services has not kept up with the needs of a growing population. The more than £25 billion announced in the Budget over two years for our health service will cut waiting times, thanks to 40,000 extra elective appointments each week and the capacity for more than 30,000 additional procedures.

Thanks to the new homes in Ebbsfleet and across Dartford, we are also becoming a much younger constituency, as younger couples settle in our community and start families. We warmly welcome these new residents, and I am confident they will welcome the Chancellor’s decision to increase the core schools budget by more than £2 billion a year, meaning the recruitment of 6,500 teachers, and the additional £1 billion investment to address the broken special educational needs system in Dartford and across our country. If Conservative Members disapprove of the revenue-raising measures in the Budget, it really is incumbent on them to say which bit of that extra investment they would cut. I am afraid we are back to magic money tree economics—we heard that very clearly from the shadow Chancellor. All these measures form part of our manifesto commitment to break down the barriers to opportunity, of which sadly far too many remain.

Finally, and perhaps most importantly for the long-term prospects of our country, I hope the whole House will support the Government’s strong focus on boosting public investment by more than £100 billion over the next five years. This is an area where we have been sadly lacking when compared with our international competitors. The announcement has been further enhanced by the Chancellor’s Mansion House speech, which included proposals to unlock the power of our pension funds to invest in our country.

Against that background, it would be remiss of me not to mention a project that hon. Members across the Chamber might remember me describing in previous contributions as shovel-ready. The proposed new lower Thames crossing is crucial to unlocking the growth that the new Government are seeking, both in the south-east and beyond, and could be started very quickly, with much of the preparatory work already having been undertaken. It would create jobs and unlock investment across the Thames estuary, addressing the largest traffic bottleneck in the UK, and allow freight to move much more easily from ports in the south-east to destinations across the country.

I will end as I began. I recognise that these are difficult decisions and that they will not be welcomed by all; however, we must not duck the tough choices needed to restore the foundations of economic stability in our country and our public services.

--- Later in debate ---

[Nesil Caliskan]

Will the right hon. Gentleman give way?

[Jim Dickson]

Will the right hon. Gentleman give way?

[Graham Stuart]

It would be entirely wrong of me, given how few Labour Members there are in the Chamber prepared to defend the Budget, if I did not now give way to one of them.

Oral Answers to Questions

Jim Dickson Excerpts

Tuesday 3rd September 2024 Commons Chamber

[Rachel Reeves]

My hon. Friend is absolutely right to remind us of the dire inheritance that this Government face. The previous Government made spending commitment after spending commitment with absolutely no idea of how to pay for them. From road and rail projects to A-levels and the Rwanda deal, we saw £22 billion of unfunded commitments. We will fix the foundations of the economy, rebuild Britain and ensure that working people are better off. We will fix the mess that the last Government left.

[Jim Dickson (Dartford) (Lab)]

Will the Chancellor confirm that a state pension increase will be announced at the Budget and that it will be equivalent to wage growth, inflation or 2.5%—whichever is higher?

[Rachel Reeves]

The Government have committed to the triple lock not just for this year, but for the duration of this Parliament. That means that pensioners are £900 better off than they were a year ago. Based on September earnings and inflation data, we will uprate pensions next year by whichever is higher: 2.5%, inflation or average earnings. We are ensuring that pensioners get the pensions that they are entitled to and have contributed to.

Public Spending: Inheritance

Jim Dickson Excerpts

Monday 29th July 2024 Commons Chamber

[Rachel Reeves]

Under the previous Government, no applications were being processed and so nobody was being sent home. We will process those applications and send people who have no right to be here back home.

[Jim Dickson (Dartford) (Lab)]

I thank my right hon. Friend the Chancellor for her excellent statement, putting public finances and public services back on their feet. Having seen how extensive this Tory cover-up has been, with unfunded commitments in multiple Departments, does she agree that it is not just her predecessor as Chancellor, but every member of the last Cabinet who is complicit in that cover-up?

[Rachel Reeves]

I do not believe that any member of the previous Cabinet could not have been aware of the scale of this cover-up and the scale of the overspending. They should hang their heads in shame. Instead of coming to this Chamber today and issuing platitudes, they should have done the right thing and apologised to the country.