Dr Jeevun Sandher

Dr Jeevun Sandher

Labour — Loughborough

Speaking in the House of Commons on 19 March 2025

Debate

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Contribution

I do not, because that would introduce exemptions and perverse incentives and make the tax system less clear. It would make the tax system as a whole less efficient. I will come to the specific ways shortly. Let us start with non-neutrality. Lords amendments 7, 12 and 16 would create non-neutrality between small charities and non-charities. That would incentivise more social enterprises to be charities instead of businesses. Lords amendments 8, 10 and 14 would create an additional NICs band for small businesses, thereby disincentivising them from growing. Under those amendments, if a business saw its revenue go over £1 million or it employed more than 25 people, all of a sudden it would incur a NICs charge. That is a cliff edge. It would introduce a perverse incentive and reduce productivity and economic growth.

More from Dr Jeevun Sandher

Other recent Hansard contributions by the same speaker.

About Hansard

Hansard is the official verbatim record of proceedings in the UK Parliament. Every word spoken in the Commons and Lords is recorded and published — this page is a single contribution from that record.

For Dr Jeevun Sandher's full parliamentary record including voting history, expenses and all other contributions, see the Dr Jeevun Sandher report card.