Employer National Insurance Contributions: Impact on Employment

I am sure the whole House will wish to join me in sending our deepest sympathy to the family, friends and neighbours of Joanne Penney, who was callously murdered in Talbot Green on Sunday. It is a shocking and horrific crime. We have protected the smallest businesses and more than doubled the employment allowance to £10,500, meaning that over half of small and micro businesses will pay less or no national insurance contributions at all. In Wales, small and medium-sized companies account for 99.3% of total enterprises.

Businesses across Wales, like those across my constituency of South West Devon, are being hit not only by Labour’s job tax but by the increasing minimum wage, rising costs and other business tax increases. Each of those alone would force many to reduce their workforce, but the combination of all three means that businesses are thinking twice about filling job vacancies or creating new posts. What reassurances can the Minister give to businesses across Wales, and to companies such as Serpells in my constituency, that their business has a promising future between now and the next election, when the Labour Budget shows them the complete opposite?

If the Conservative party cares so much about employment and business in Wales, perhaps the hon. Lady should explain why her colleagues in the Senedd voted last week to block thousands of new apprenticeships and more than £300 million of support for businesses in Wales. Her party voted against that.

Let us go to the shadow Front Bench. I call the shadow Secretary of State for Wales.

Who is the Secretary of State battling for, Kazakhstan or Wales? Labour’s political choices mean countless jobs in Wales are at risk due to the national insurance rise. The damaging impact that is having in the Minister’s back yard is clear, with more than 1,800 jobs reportedly at risk at Cardiff University—in one of the many sectors that are desperately trying to stay afloat due to the Welsh Government’s jobs tax and the Labour Government’s impact on the Welsh economy. With Cardiff University ploughing on with its Kazakhstan campus, can the right hon. Lady be happy with the offshoring of those roles in that sector and many others because of the continued fallout from the autumn Budget?

I am not sure where the hon. Member has got the idea about outsourcing jobs. It was her party that told our universities across the country to go out and recruit international students, which they did. Now, because of that and because of what happened under her Government’s watch, those international students are not coming any more. She should, again, look to her colleagues in the Senedd. There is the education budget; her party voted against it. She needs to talk to her colleagues in the Senedd.

I call the Liberal Democrat spokesperson.

The national insurance increase is set to hit high streets in Wales hard, with many traders saying that they will lay off staff as a result. Last week, the Government announced £100 million of funding to be spent on reinvigorating Welsh high streets, but no towns in the Swansea, Neath or Amman valleys were on that list. Will the Secretary of State clarify the criteria used to select the successful towns and whether areas such as Ystalyfera can expect to benefit from future funding? That is one high street that is certainly worth investing in.

The criterion for the announcement last week is publicly available; I suggest the hon. Gentleman has a look at it.

Diolch yn fawr iawn, Lefarydd. I am sure the House will join me in remembering the Llandow air disaster in which 80 people lost their lives 75 years ago. Elaine’s Hair and Beauty Salon in Llanrug, Pitian Patian Nursery in Llanwnda and care homes and GP surgeries across Dwyfor Meirionnydd tell me that national insurance hikes coming in just a few weeks will stop them hiring new staff. The Secretary of State’s Government say they are cutting welfare to get people into jobs. What jobs?

Plaid Cymru’s manifesto for the general election had £5 billion of unfunded commitments. If the right hon. Lady’s party were in power, we would be facing the same legacy that we had from the Conservative party: a £22 billion black hole that has meant that we have had to take difficult decisions. Her constituents will want more investment in our NHS, more investment in our public services and more investment to support businesses; her party voted against all that in the Welsh budget.

If the Government agreed with the Secretary of State’s counterpart in Cardiff, we would have the money from the Crown Estate as well. Back in 2015, the Secretary of State and I walked through the same Lobby to vote against what she then described as despicable Tory welfare cuts, and she dared the break the Labour Whip to do so. Given the evidence of her strong convictions on the issue, how can she justify remaining in a Cabinet that is intent on implementing Tory-style welfare cuts?

We inherited a Tory welfare system that is the worst of all worlds: it has the wrong incentives; it discourages people from working; the people who really need a safety net are still not getting the dignity and support that they need; and the taxpayer is funding an ever-spiralling bill. It is unsustainable, indefensible and unfair. Our principles for reform are clear: supporting those who need support, restoring trust and fairness in the system, fixing that broken assessment process and the disincentives and supporting people to start, stay and success in work. The right hon. Lady should support that.