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Lord Randall of Uxbridge (Con)

Speaking in the House of Lords on 21 January 2025

Debate

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Contribution

My Lords, I have added my name to the amendments tabled by the noble Lord, Lord Scriven, and the noble Baroness, Lady Kramer. Over 30 years ago, as an MP I went to see my predecessor, complaining that Governments do not understand small businesses. At that time there was a Conservative Government, who did some things to rectify that position. Ten years ago, the family business, of which I was the chairman, closed. I am grateful that I closed it when I did; we did not have to put up with Covid, Brexit or this type of thing. I am saying this because I am not sure that Governments understand small businesses. The pharmacies, dentists and GPs we are talking about here are small businesses. I have always described the Treasury as being like your parents, who do not let you have the things that you want because they say you cannot afford them, but the damage that it could do with this increase in national insurance contributions will be devastating for pharmacies, GP practices, hospices and others. In the other place, when Members of Parliament want to get beneath the skin of people on the other side, they occasionally say such things as, “What about the sick and dying?” I have heard that quite a few times. In this case, I have to say that those are the people who will suffer because of this increase. I do not have the financial wisdom to know whether the suggestion put forward by the noble Lord, Lord Scriven, about how to raise the money is viable. However, I have to say that this measure being put forward is not the correct one, because it will have such an adverse effect not just on those businesses but on the people served by them. I know that Governments never give way on these things—I have been around long enough to know that that is the last thing they would do—but I urge the Government to have another look. I do not expect them to accept the amendments today—they may come back with an improved version—but they must look at this seriously, because it is a mistake. We will come on later to charities, which is another big issue, but for the moment we are talking about what is contained in these amendments and I urge the Government to think long and hard about what they are doing.

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