HC Deb 07 February 1978 vol 943 cc506-7W
Mr. Crawford

asked the Chancellor of the Exchequer what is his estimate of the cost to the Exchequer of the removal of the levy on the self-employed (a) in Scotland and (b) in the United Kingdom.

Mr. Orme

I have been asked to reply.

The total loss of revenue in respect of 1978–79 if class 4 national insurance contributions of the self-employed were not payable would be some £94 million for the United Kingdom of which about one-tenth would relate to Scotland. Only 12 per cent of that amount, the part contribution of about £11 million towards the cost of the National Health Service, would be lost to the Exchequer, as the remaining 88 per cent is a contribution to the National Insurance Fund. On the other hand there would be a saving to the Exchequer of £15 million because the Consolidated Fund supplement on the national insurance element of the contribution would be smaller.