L

Lord Fuller (Con)

Speaking in the House of Lords on 6 February 2025

Debate

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Contribution

My Lords, so often councils and other organisations indulge in special pleading for an exceptional case here or a particular need there. This small debate on my Amendment 70 has shown the gravity of the situation that councils find themselves in. It is the cumulative impacts of this exceptionally damaging proposal which will harm the most vulnerable and those in greatest need. The debate has also shone a light on the efficiencies that councils have taken in aggregate since 2010. Over £24 billion-worth of annual savings have been made by councils, if one takes into account inflation in that period. It has allowed them to keep the wheels on the wagon while suffering a 22.2% reduction in core spending power. However, there comes a moment when you cannot keep trimming the fat—there is no more fat to trim. This £1.227 billion additional burden on council-tax payers, who are paying their council tax out of their own taxed income, is a real number. I do not dismiss it, as the Minister suggests when he says that it is just an external number and that the Government do not believe anything that does not come out of the Treasury. We heard that argument on the agricultural property relief, for example. “Just trust us on this” is not something that we want to do. We cannot keep hollowing out local government. I proposed a remedy. Through the Section 34 mechanism, this assessment can and should be made. We can then have a debate, not just for this year but in those following the comprehensive spending review, on what the additional burdens will be. We need to get down to real numbers. I mention Harlow, simply because my noble friend Lady Neville-Rolfe did so. Harlow’s increase in national insurance contributions this year on a £10 million or £11 million budget is over £1 million—and the Government have just given them £198,000. That is the quantum of the shortfall. Not only has that cost been made but their core spending grant has been cut by 21%. I will not say much more, but we have placed a marker on this point. I am disappointed that we have not answers to all the points. Not having an answer to those questions which I and my noble friends asked invites representations on Report. I expect my noble friends and I will return at that point. In the meantime, I beg leave to withdraw the amendment.

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