HC Deb 27 July 1976 vol 916 cc176-7W
Mrs. Wise

asked the Secretary of State for the Environment how much he estimates will be added to the labour costs of local authorities by the increase proposed in the employer's share of the national insurance contribution; and where the money will be found.

Mr. John Silkin

It is estimated on the basis of the number of local government employees in England and Wales, including police, at March 1976 that the additional cost of the proposed increase in the employers' share of the national insurance contribution will be £145 million a year. This expenditure will be financed from the general rate fund of local authorities, to which the Exchequer contributes through the rate support grant.

Mrs. Wise

asked the Secretary of State for the Environment how much will be added to the labour costs of British Rail by the proposed increase in the employer's share of the national insurance contribution; and whether he expects this to have any effect on rail fares or freight charges.

Dr. Gilbert

The proposed increase in the employer's share of the national insurance contribution should add just under 2 per cent. to British Rail's labour costs. It is for the Railways Board to decide what action to take to accommodate this increase.

Mrs. Wise

asked the Secretary of State for the Environment how much will be added to the labour costs of the National Freight Services by the proposed increase in the employer's share of the national insurance contribution; and whether he expects this to have any effect on freight charges.

Dr. Gilbert

The additional labour cost to the Road Freight Industry—of which the National Freight Corporation accounts for about 10 per cent.—will be about 2 per cent. The effect on prices will vary between different sectors of the market.

Mrs. Wise

asked the Secretary of State for the Environment what estimate he has made of the effect of the proposed increase in the employers' share of the national insurance contribution on the labour costs of public bus transport; and whether he expects this to have any effect on bus fares.

Dr. Gilbert

I estimate that the effect will be to increase bus costs by about £13 to £14 million a full year. If this were met through fare rises they would need to be of the order of 1 to 2 per cent.