Social Security Contributions and Benefits Bill - Clause 6

Introduced procedural matters and outlined limitations of the debate, emphasising that it is restricted to discussing amendments and new clauses.

Asked questions about the drafting of new clause 1 regarding 'green manufacturing companies' and questioned whether polluting activities could still qualify for exemption if a company manufactures wind turbines or electric vehicles.

Proposed an amendment to quadruple the employment allowance from £4,000 to £16,000 for two years to stimulate economic activity and support small and medium-sized enterprises. Emphasised the need for stimulating growth in new industries such as the green economy.

Asked about the cost implications of Sarah Olney's proposal on the Exchequer.

Represented the Opposition and expressed support for clauses 1 to 5, which introduce a new zero rate of secondary class 1 national insurance contributions for employers who take on employees in a freeport. He also noted that clauses 6 and 7 provide a similar benefit for armed forces veterans.

Emphasised the need to focus on the amendments before the House, reminding members that there will be an opportunity for a broader discussion during Third Reading.

Argued against new clause 1, stating that it would introduce major changes to tax system without proper consultation or costing. He also opposed new clauses 3 and 4, arguing they are unnecessary and costly without a clear funding source. Additionally, he highlighted the existing government initiatives supporting green manufacturing.

Questioned the Minister about Northern Ireland’s £735 bonus payment, which includes tax and national insurance contributions for health and social care workers. He asked if the Minister would replicate this in the rest of the UK.

Mr Norman outlined the four main provisions of the Bill: NIC relief for employees in freeports to attract businesses and regenerate communities; NIC relief for employers hiring veterans to support employment prospects; exemption for test and trace support payments from self-employed NICs to ensure consistent treatment with employed counterparts; and changes to disclosure of tax avoidance schemes legislation to enable HMRC to act decisively. He emphasised the bill's role in supporting regional growth, boosting veteran employment, and strengthening measures against tax avoidance.

Critiques the Bill's approach to veteran employment relief, arguing it should support long-term durable employment. Questions why the relief is for only 12 months when freeports receive three years of relief. Criticises lack of clarity on timing and public consultation regarding relief duration. Welcomes the exemption for self-isolation support scheme payments but requests clarification from Ministers. Calls for better understanding of progress made in tackling tax avoidance schemes.

Intervened to highlight the importance of helping veterans settle into civilian life, especially during the first 12 months post-service. Acknowledges that targeted help can prevent servicemen from re-joining forces due to inability to find suitable employment.

Acknowledged some positive aspects but expressed regret that the Bill could have done more, especially considering national insurance's disproportionate impact on young and low-paid individuals. Criticised blanket increases in NI as exacerbating inequalities. Called for Government reflection to address these issues.

Expressed gratitude to the Minister for bringing forward the Bill and supporting it. Raised concerns about tax on the covid thanks package, specifically in Northern Ireland where staff receive £735 but are taxed at 20% and pay national insurance at 12%, leaving them with approximately £500. Welcomed comments about freeports and supported measures for veterans' support in the first year after service. Emphasised that Northern Ireland is part of the UK, mentioning issues related to European healthcare representation.