§ Mr. McKayasked the Chancellor of the Exchequer what was the percentage of wages paid by employers for National Insurance, excluding National Health charges and the Industrial Injuries Act, in the financial year 1960–61; what will be the approximate cost in percentage of wages in 1961–62; and what was the percentage return in tax relief which employers received in 1960–61 on such contributions.
§ Mr. BarberEmployers' contributions to the National Insurance Fund in 1960–61 represented 2.6 per cent. of the total wages and salaries in Great Britain. The corresponding figure for 1961–62 is expected to be about 3.1 per cent. If employers who carry on a trade or business were prohibited from deducting their National Insurance contributions in respect of their employees as an ordinary business expense for tax purposes and if other employers were denied relief on their contributions the extra yield of tax would be 35 per cent. of their contributions.