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National Insurance Contributions Bill

We would look carefully at such a proposal, but we have other concerns with the Bill. We shall certainly want to examine a number of amendments in Committee. The hon. Gentleman has raised an interesting point, and perhaps we shall have an opportunity to examine the full implications of it if he serves on the Committee. From my previous experience of serving with him, I very much hope that he will. A further attribute of the Bill is that it demonstrates that the role of Parliament is not being taken quite as seriously as it might be. For all the talk about strengthening Parliament's position that we heard from the new Prime Minister when he first arrived in his new post, we have seen little action to support it. The Bill will weaken Parliament's position. At present, the upper earnings limit must be no more than seven and a half times the level of the primary threshold. Clause 1 abolishes that ratio and provides for the upper earnings limit for 2009-10 and beyond to be set by means of secondary legislation. The Financial Secretary said that that would be done by the affirmative resolution procedure, but we could nevertheless be faced with a situation in which potentially substantial tax increases could be achieved by Committee. For example, what would stop a Government substantially increasing the upper earnings limit by secondary legislation? It might interest the hon. Member for Wolverhampton, South-West (Rob Marris) to learn that, as far as I can see, they could increase the higher rate band of income tax—if we take income tax and national insurance together—by 11 per cent. through secondary legislation. That is not something that the Conservatives would welcome. Although the Bill proposes to abolish the ratio, we would certainly want to examine in Committee whether there was any good reason why a new ratio could not be inserted, and why the Government should have the freedom that they are proposing for themselves to enable any changes to the upper earnings limit to be performed by secondary legislation. That seems to represent a weakening of Parliament at a time when the Government are professing to be in favour of strengthening it. Here we have a Bill that will increase taxes, and do so stealthily. This story demonstrates incompetence and a failure of internal communications. It demonstrates that those saving for pensions will not be rewarded, and it weakens Parliament. Given that it is nearly Christmas, perhaps I may summarise the Bill as follows, as we hear the same old things: more stalling words, a squeeze on pensions, tax double charge and a partial cut in S2P. [Laughter.] Well, it is Christmas, and if I can put a smile on the face of both the Ministers, I think I have achieved something this afternoon. However, we will oppose the Bill, because it is flawed, it will introduce yet another stealth tax, and it does nothing for the long-term good of Britain's pensions.