Oral Answers to Questions

Wendy Chamberlain Excerpts

Tuesday 9th September 2025 Commons Chamber

[Rachel Reeves]

The Government are currently consulting on a landfill tax. It is a consultation, and it is open for comments from right across industry, but this Government are investing in infrastructure. Compared with the plans that we inherited, which would have seen capital investment fall as a share of GDP, we are instead putting an additional £120 billion in, as well as £70 billion through the National Wealth Fund. Crucially, that is leveraging in private sector investment in transport infrastructure, including roads, railways and airports, and digital infrastructure. We are growing the economy—a far cry from what the Conservatives did in their 14 wasted years.

[Wendy Chamberlain (North East Fife) (LD)]

3. What assessment she has made of the potential impact of changes to employer national insurance contributions on economic growth.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

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

--- Later in debate ---

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

Thank you, Mr Speaker. The immediate task facing the Labour Government was to take action to stabilise the public finances and invest in our public services. On national insurance, we did that in a way that protects the smallest businesses by increasing the employment allowance from £5,000 to £10,500. That means that 865,000 employers will pay no national insurance contributions at all, and more than half will either gain or see no change.

[Wendy Chamberlain]

The national insurance increases in last year’s Budget not only increased national insurance, but impacted on part-time workers, many of whom the hospitality industry relies on. Hospitality companies in North East Fife have written to me directly, but they have also started to share with their customers the real impact of the cost increases they are seeing. Does the Minister agree that there has been an impact on hospitality, and will he commit to ensuring that the Chancellor delivers a hospitality-friendly Budget come the autumn?

[Dan Tomlinson]

I thank the hon. Member for being the first parliamentarian today who has not asked me, “Who will you be backing in the Labour deputy leadership contest?” I appreciate that very much.

When it comes to small businesses, in particular those in hospitality, overall employment has increased by 380,000 since the Government came to power. This week, I will be having discussions with members of UKHospitality to think about how we can support the sector more through the changes to business rates announced last year. We will come forward with more details on that in the Budget later this year.