Commons Sense

House of Commons · Ministers' Questions

Employer National Insurance Contributions

Wednesday 8 January 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Rebecca Paul questioned the impact of increased employer national insurance contributions on the science and technology sectors, highlighting an additional 372 million in annual costs for universities.
  • Alan Mak inquired why the Secretary of State permitted the Chancellor to implement measures at the Budget that could hinder growth in Britain's tech sector.
  • The government asserted that it has stabilized the public finances and provided new investment in universities, contrasting this with the previous administration's approach.

Topics (select to filter)

Questions & Answers

Q1 Rebecca Paul Con Reigate
Taxation Science & Technology
Context

Universities face additional annual costs due to the rise in employer national insurance, threatening their ability to fund cutting-edge research, recruit top talent, and support early career researchers. This situation was brought up by Rebecca Paul.

Question

What assessment has been made of the potential impact of increases in employer national insurance contributions on the science and technology sectors? Universities face an additional £372 million in annual costs due to the rise in employer national insurance, threatening their ability to fund cutting-edge research, recruit top talent, and support early career researchers. Does he recognise the detrimental impact that will have on research in this country? Will he explore measures to ensure that our global competitiveness in science and innovation is not undermined?

Answer from The Secretary of State for Science, Innovation and Technology (Peter Kyle)

We have put universities on a solid financial footing with new investment. This Government is finding ways to take that great start forward and get new investment into universities. The war on universities by the previous Administration has ended.

Partly answered

Not addressed: Explained government's support for universities but did not address specific measures or recognising detrimental impacts of NI increases

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Alan Mak Con Havant
Economy Employment Business & Trade
Context

A British tech unicorn, Thought Machine, faces challenges due to increased costs from employer national insurance. The founder, Paul Taylor, expressed concerns about less incentive for company growth. Alan Mak cited this situation.

Question

Why did the Secretary of State allow the Chancellor to make growth harder for Britain’s tech sector at the Budget? Companies like Thought Machine will be less incentivised to grow as a result of the increased employer national insurance contributions, leading to missed opportunities for new jobs and investment. Why didn’t the Secretary of State stand up to her?

Answer from The Secretary of State for Science, Innovation and Technology (Peter Kyle)

We have put the public finances on a solid footing. Our economy is now stable in a way that has not been the case for 14 years. The Conservatives want all the benefits without saying how they will pay for them. Until they do, they will not be taken seriously by anyone, including companies like Thought Machine.

Not addressed: Shifted focus to criticising opposition's economic stance rather than addressing the specific issue raised about tech sector growth

How: Criticised Opposition

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)