Charles Walker condemns any increase in national insurance that doesn't go towards funding local health services.

6.55 pm

Mr. Charles Walker (Broxbourne) (Con): It is a delight to be called with another three hours ahead of us. So often in the Chamber I fear that I shall be given only the last five minutes at the end of the debate before the start of the winding-up speeches, but my Whip has told me that I can have up to two hours. I will not take two hours, however, because I am well aware that a number of my colleagues want to get back to their families and homes to embark on their Christmas constituency engagements. A lot of nonsense is talked about our going off on holiday tomorrow, but actually we are not doing that. We will all be in our constituencies for the next week, bringing great joy and warmth to those whom we represent.

I am a very simple chap. I do not claim to be a great brain, or to have a great understanding of financial or Treasury matters. But I smell a rat here: I believe that this is a tax rise. I smell that rat because the Treasury has sent its two nicest and most charming Ministers to sell it to the House. We are talking about considerable sums. Various figures have been mentioned, but one of the higher ones is £1.5 billion, which is almost the equivalent of a penny on income tax. My constituents are entitled to suspect that they will be paying rather a lot of the additional £1.5 billion in national insurance contributions, because that is what has been happening for the last 10 years. They seem to have paid more and more tax, while being told by the Government that they are jolly lucky to have the privilege of paying more and more.

I am slightly concerned about this national insurance increase, because I believe that it will fall most heavily on such people as junior doctors, police inspectors, deputy heads of primary schools, taxi drivers—of whom there many in my constituency—and skilled artisans such as electricians and plumbers. Over the past decade, particularly in Hertfordshire, those people have seen the tax contribution that they are expected to make increase dramatically, and they will be nervous about the possibility that once again they will be asked to pay more and receive less, or nothing, in return.

We have, of course, seen national insurance increases before. I think that there was one of about £8 billion that was meant to fund the national health service. That may have been a very good thing, but the money has certainly not gone towards funding the national health service in Hertfordshire. On Wednesday this week, we will discover that another of our hospitals is scheduled for closure. Chase Farm hospital in Enfield, north London, was earmarked for a significant scaling down last week. Again, my constituents are right to be concerned about the possibility of a national insurance increase, because one thing is almost certain: that money will not be spent in Broxbourne, although it may be spent in other parts of the country. It may be spent in Scotland, for example, where expenditure per head is 40 per cent. more than it is in Hertfordshire.

Kelvin Hopkins: My constituency and the hon. Gentleman’s are not too far apart. I believe that in Hertfordshire health spending is above the fair funding target, but in my constituency it is below that target. Does the hon. Gentleman accept that some of the extra cash might help my constituents in Luton?

Mr. Walker: I should be delighted if it went towards helping the hon. Gentleman’s constituents. I am referring to all the additional national insurance money that we are discussing in relation to the Bill—I wish to remain within the bounds of the debate, Mr. Deputy Speaker. However, I should also be delighted if my constituents, too, could partake in the additional bounty, and we could keep one of their hospitals open.

Mr. Mike Weir (Angus) (SNP): The hon. Gentleman has touched on the subject of spending in Scotland, which of course gives more to the Treasury than it gets back, as figures have shown; in fact, the south-east of England gets more than Scotland and many other areas of England. However, Scots also pay national insurance, and if the hon. Gentleman is so concerned about it, will he support our drive for independence, which would solve the problem?

Mr. Walker: The hon. Gentleman—

Mr. Deputy Speaker (Sir Alan Haselhurst): Order. Before the hon. Gentleman is tempted to go down that road, I should say that the Christmas spirit may be overflowing and so might time, but we must keep within the boundaries of the Bill.

Mr. Walker: I shall crack on, Mr. Deputy Speaker. I am not quite aware of the hon. Gentleman’s figures. In my constituency, spending per head is £5,800, whereas in Scotland it is £8,200. I would be happy to have that debate with him at a later date.

The Financial Secretary said that pensioners are so much better off under this Government. If so, why are they so cheesed off in Broxbourne? Very few pensioners to whom I talk have anything good to say about the Government. Many have seen their standard of living
decrease because council tax has gone up due to underfunding from the Treasury and the cost of fuel has gone up. The Government are being a little disingenuous when they say that pensioners are better off than they have ever been. I am not sure that that is the case. Do not take my word for it; go and ask the pensioners.

With that, I wish you all a very merry Christmas and I shall see your smiling faces in January.

7.1 pm

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