03 Apr
Question
National Insurance: Creative Industries

Introduction The Question session in the House of Commons focused on the potential impacts of the planned increase in employer national insurance contributions on the creative industries. Main Points Discussed

  1. Impact on SMEs: The debate underscored the sensitivity of the creative industries to such fiscal policies, given that many entities within this sector are small and medium-sized enterprises (SMEs). The session highlighted that while these firms are largely shielded from the increase, the overall sentiment is one of understanding the government's rationale but concern over financial pressures.
  2. Government's Stance: The government, represented in the discussions by Chris Bryant, emphasized the broader fiscal need for increased public service funding, maintaining that while the increase may cause strains, it is deemed necessary to bolster public services.
  3. Alternative Measures: Sir Desmond Swayne proposed alternative relief through legislative amendments, notably suggesting the restoration of Baroness Kidron’s amendment to the Data (Use and Access) Bill as a means of compensating the affected industries. However, the government rejected this, citing that such an amendment would have negligible financial benefits.
Small and Medium-sized Enterprises (SMEs) predominate the creative industries

Characterization important for understanding policy impact.

Outcome

  • The government held firm on proceeding with its planned increase in national insurance contributions despite acknowledging potential adverse effects on creative industries. No commitments were made towards revisiting the withdrawn amendment as part of the legislative agenda.

Statistics - Contextual Insights

  • The debate did not yield any specific new statistical data during this session. However, implicit recognition of SMEs' predominance in the creative sector was vital to perceiving the potential impacts at a macroeconomic level.

Outcome

The session concluded without changes to the government’s policy, maintaining the planned increase in employer national insurance contributions. No substantial new commitments were made regarding the withdrawn Data Bill amendment, reinforcing the existing fiscal policy direction.

Key Contributions

Sir Desmond Swayne
Conservative

Inquired about assessments on the planned national insurance impact.

Chris Bryant

Rejected the idea of reinstating Baroness Kidron’s amendment, citing financial insignificance.

Original Transcript
Sir Desmond Swayne
New Forest West
Con
Question
UIN: 903603

9. What recent assessment she has made of the potential impact of the planned increase in employer national insurance contributions on creative industries.

The Minister for Creative Industries, Arts and Tourism
Chris Bryant
09:57

As the right hon. Gentleman knows, a large proportion of the creative industries are constituted as small and medium-sized enterprises, and the vast majority of those are protected from the increase in national insurance contributions.

Importantly, as many of them have said to me, they fully understand the need for greater expenditure on our public services, and that has to be matched by finding the money from somewhere.

Sir Desmond Swayne

I have always been particularly impressed by your brooch, Mr Speaker. Nevertheless, those increases are damaging for any enterprise, but we could make it up to them by restoring Baroness Kidron’s amendment to the Data (Use and Access) Bill. Will the Minister do that?

Chris Bryant

No, we have just taken it out of the Bill for the precise reason that we do not think it would make the blindest bit of difference to the financial support provided to creative industries today. That is why we are not supporting the amendment.

All content derived from official parliamentary records