§ 6 and 7. Mr. McKayasked the Chancellor of the Exchequer (1) what he estimates would be the reduction in cost per year to his Department as an employer if contributions to the National Insurance Fund by the employees were reduced for men by 1s. 10d., for women by 1s. 7d., for juveniles by 1s., and for others in proportion, per week, and if the employer's contributions were reduced to the same extent for persons employed in the United Kingdom; and what would be the additional savings to his Department due to local authorities having less to pay on Insurance Fund contributions;
(2) what he estimates would be the reduced cost to employers in the private trading sector if their contributions to the National Insurance Fund were reduced in proportion to a reduction in the contributions of employees of 1s. 10d. for men, 1s. 7d. for women, and 1s. for juveniles; and what would be the reduction to employers in the other sectors.
Mr. AmoryIf employers' National Insurance contributions were reduced in proportion to reductions in employees' contributions of 1s. 10d. for men, 1s. 7d. for women and 1s. for juveniles, the total reduction in employers' contributions would be about £87 million a year. Approximately £7 million would relate to direct employees of the Central Government, including the Armed Forces, about £6 million to local authorities, about £10 million to the nationalised industries and other public corporations, and the balance of £64 million to the private sector. It is not possible, without undue expenditure 198 of time and money, to estimate the reduction in grants from the Exchequer to local authorities which would result from the reduction in the employers' contributions payable by the latter.
§ Mr. McKayWhilst thanking the right hon. Gentleman for that information, in order to get the matter clear, will he tell me what would be the total figure of the Insurance Fund if contributions were reduced to the amounts mentioned in the Questions?
Mr. AmoryI have answered the points put by the hon. Gentleman in his two Questions, if he will study the figures, but if there is any additional information he would like to have, and which I can give him, I shall be glad if he will write to me, when I will let him have the answers or, alternatively, perhaps he will put down another Question.
§ 11. Mr. McKayasked the Chancellor of the Exchequer how many of the contributors to the National Insurance Fund have reached the 6s. 9d. in the £ Income Tax rate, how many the 8s. 6d. in the rate, how many are paying the Surtax rate at 2s. in the £, at 3s. 6d. and at 6s. 6d., respectively; and how much is the tax relief for each of these sections in connection with their contributions to the National Insurance Fund per week, for men, and how much for women.
§ Mr. McKayIs it correct that the total amount of tax relief to insured persons is £50 million and that the tax relief for employers amounts to £129 million?
Mr. AmoryI could not give that information without notice, but the hon. Gentleman will appreciate that it is only the pensions contribution which ranks for tax relief.