§ Mr. Crawfordasked the Secretary of State for Social Services what contribution is made to the Exchequer annually by the levy on the self-employed; and what the contribution would be if the levy were reduced to 5 per cent.
§ Mr. OrmeI would refer the hon. Member to my reply to him on 6th December 1976—[Vol. 922, c.68.]
The amount of the payment made to the Exchequer, representing a payment towards the cost of the National Health Service, is 7.5 per cent. of whatever total of Class 4 contributions is collected. At an estimated sum of £78 million for the tax year 1975–76, this would amount to slightly less than £6 million.
Reducing the levy from 8 per cent. to 5 per cent. would reduce that figure by three-eighths.