National Insurance Contributions Increase
Debate between Simon Clarke and Caroline Johnson(2 years, 1 month ago)
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Mr Clarke
I agree with my hon. Friend. The hon. Member for Leeds West (Rachel Reeves) said that when the facts change, we should change our policy, but the point is that the facts have not changed. The covid backlog has not changed and the damage that it has done to our ability to deliver the healthcare that people need has not gone away. Governments have recognised the importance of tackling our social care issues for a long time, but there is no record of action. This time, things are different. We believe that it is only right that in an advanced and wealthy country such as the United Kingdom, people should know that their loved ones will have dignity and financial certainty if they require care. The new levy will allow us to achieve both our health and social care aims.
Dr Caroline Johnson
The hon. Member for Leeds West (Rachel Reeves) talked about politics meaning choices. I have listened carefully to both Front-Bench speeches and I heard that the Opposition want to remove the health and social care levy but not how they will pay for social care instead. Perhaps the Minister heard something I did not. Could he enlighten me?
Mr Clarke
I heard a lot of warm and fairly vague phrases, but I did not hear a concerted plan, and that of course goes to the heart of this question. The hon. Member for Leeds West said in her speech that the voters are smart and savvy, and I agree with her, but they know an Opposition playing politics when they see it.
The £12 billion average annual investment, which is of course a recurring investment—that is the crucial point—to meet a recurring need, will tackle the elective NHS backlog, while ensuring that the health service has the resources it needs over the coming years. It will strengthen our adult social care system, allowing us to invest at least £500 million to give our army of extraordinary social care workers new skills, and it will enable the Government to roll out the long-awaited reforms to funding for families through a cap on adult social care costs.
This is a transformative policy that will tackle serious and long-standing issues, but to fund such a significant increase in permanent spending we have had to make the tough but responsible choice to increase taxes. Only a broad-based tax such as income tax, VAT or national insurance can raise the sums needed for such significant investment. Using NICs as the base has several advantages. First, it means the levy will be paid for by employers, employees and the self-employed, including, from April next year, by workers over state pension age.
Secondly, this is a progressive way to raise funds because those who earn more will pay more: the top 15% of taxpayers will pay half the revenue. A basic rate taxpayer will pay about £3.49 per week, while 6.2 million—6.2 million—of the lowest earners will be exempt entirely from the levy and most small businesses will not be affected at all.
Mr Clarke
On the hon. Gentleman’s point about our support for local authorities, we are giving £1.6 billion extra in each year of the spending review we announced in October to support local authorities with the challenges they face. Of course, the levy will fund £5.4 billion of investment in social care over the next three years, so it is a serious response to a serious challenge.
To return to the advantages of the way we have structured the levy, the third design advantage that stands out is that we have also announced an equivalent increase in dividend tax rates. There is therefore fairness across the spectrum in how this is being paid for.
I know there are some who ask why we need to raise tax at all, and instead say that we should borrow to fund permanent increases in spending. Throughout this speech I have outlined all that the Government have done to protect people’s finances as we recover from the pandemic and deal with the rising cost of living, and those actions mean our economy has made a strong recovery from covid-19. Our GDP has rebounded, and over the past months job vacancies have hit record highs, while the unemployment rate has fallen sharply. However, it is easy to forget that all those steps come at a huge cost. Covid casts a long shadow across our economy. Indeed, our debt is at its highest since the early 1960s. As I have reminded the House on many occasions, that high level of borrowing leaves us susceptible to shocks, including changes in interest rates and inflation.
Dr Caroline Johnson
My right hon. Friend is making some excellent points about the importance of balance in our finances. One thing my constituents will want to know as we spend all this money from the health and social care levy is that it is being well spent and used very efficiently. What can my right hon. Friend tell me about how he will ensure that the money is spent efficiently and with the best possible productivity?
Mr Clarke
Making sure that we spend taxpayers’ money wisely is the central duty of any Government. It is something that, as Chief Secretary, I work very hard on with officials and Departments to make sure that we scrutinise spending in the way that delivers best value.
Some fairly spurious points have been raised about our record on issues such as PPE procurement, and we need to remember what I think could best be described as the brass neck of the Opposition in calling us out on this issue, when I think the hon. Member for Leeds West suggested at one point that we should procure our PPE from historical theatre re-enactment companies or fancy dress companies. Procuring PPE at pace brought with it some inevitable challenges, and it is vital that we had the resources to deal with the situation we faced at the time.
Rural Crime and Public Services
Debate between Simon Clarke and Caroline Johnson(5 years, 10 months ago)
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Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)
It is vital, as we have heard from colleagues across the House, that we tackle the challenge of crime in rural communities. My constituency is unusual on Teesside in that it is the only one with a significant rural element, in the shape of rural East Cleveland. At my rural club, I have heard eloquent testimony from local farmers and people who run rural businesses on issues such as hare coursing, theft, trespass, and the production of drugs on isolated patches of farmland. There is a very serious problem. Perhaps it does not attract some of the media attention that urban crime, particularly crime in the capital, receives, but that does not mean that it is not very serious.
For example, in the coastal town of Saltburn at Easter, there was a real wave of antisocial behaviour. The Coco & Rum restaurant was attacked. A gang of youths was gathering around the local Sainsbury’s, drawn there by the wi-fi signal. Saltburn may not be a rural community, but it is a coastal community, so it falls into the category of somewhere that is quite difficult to police.
Good local policing makes a huge difference in cracking down on all these problems. I pay great tribute to the work of the Guisborough neighbourhood policing team, who are the main focus of policing in East Cleveland. Led by Inspector Fay Cole, they do a really fantastic job. They do not have large numbers of people. They have a very large area to police—it profiles as somewhere with many of the features of an urban community, just spread out in a more disparate fashion. They do a brilliant job. At the Skelton McDonald’s during the recess, I heard directly from the people there how grateful they were for the work of the local constabulary in cracking down on problems they had had with antisocial behaviour. So it can be done. Considering the resources that are available, the team do an outstanding job.
That brings me to the issue of resources. I will concede that there is funding pressure on our police. That would be my No. 1 priority for additional investment as our national finances stabilise, and I welcome the comments made by the Home Secretary in his Andrew Marr interview at the weekend. However, I find it well-nigh unbelievable that Labour Members show such collective amnesia as to why we are in the current situation regarding our public finances. The ruinous state that we inherited in 2010, which they—[Interruption.] They look down. They look at their phones. They look anywhere other than at the truth of the matter, which is—[Interruption.] The truth of the matter is that it was a shambolic situation, and we are still paying the price for it now. Were they to have the opportunity to put into practice some of the policies that they boast about now, we would very quickly return to that state of affairs.
Dr Caroline Johnson
My hon. Friend is giving an important speech and making his point very well. Is it not right that the cost of the interest we are paying on the debt created by the Labour Government is roughly equivalent to the current policing budget? Had they not created such huge levels of debt, would we not be able to provide a much better service?