§ 12. Mr. McQuarrieasked the Chancellor of the Exchequer if he will take steps to give compensatory relief to employers to offset the effects of the increase to be paid in national insurance charges in consequence of his recent financial statement.
§ Mr. BiffenWhile I appreciate the current difficulties of employers, I believe that the provisions of the Social Security (Contributions) Bill strike a fair balance in respect of their contributions.
§ Mr. McQuarrieI thank my right hon. Friend for that reply, but does he agree that, as the employers' share of the national insurance contribution has grown steadily over the past few years, the additional surcharge imposed on them should be abolished, because they gain nothing whatsoever from it?
§ Mr. BiffenI have noted my hon. Friend's recommendation. The House should know that the national insurance surcharge now yields £3,500 million a year. Doubtless any assessment made will be undertaken by my right hon. and learned Friend the Chancellor when he frames his Budget.
§ Mr. WhiteheadWill the Minister tell employers in my constituency and elsewhere in the country in what way the recent measures, which were not in fact announced but which are to take effect, aid the competitiveness of British industry?
§ Mr. BiffenI am sure that the hon. Gentleman will realise that the measures are intended to finance social expenditure. If he denies the end, he can complain about the means.
§ Mr. Nicholas WintertonI fully appreciate the very astute responses of my right hon. Friend. Does he agree that industry at present is suffering from a severe cash flow problem? Was it not very unfortunate of the Government, having reduced the minimum lending rate by 2 per cent., which was very welcome and provided relief for industry, to take back a great deal of that by increasing national insurance contributions from April next year and putting industry almost back to square one? When will we help the manufacturing base of the country to survive?
§ Mr. BiffenI thank my hon. Friend for his kind words about the reduction in MLR, but I have to say to him that I believe that the financing of the welfare benefits that has been decided upon in the current legislation is wholly legitimate. It is in keeping with past practice. I can see no way of departing from it that would not otherwise require additional revenue. Givern that, the alternatives for business could be equally damaging.