HC Deb 27 July 1978 vol 954 cc876-7W
Mr. Lawson

asked the Chancellor of the Exchequer, further to his Written Answer, Official Report, 7th July, c. 318, if he will set out (a) what the total gross cost of the national insurance surcharge to the public sector would have been were all sectors to pay and the distribution of that cost between central Government, local government, the Armed Forces and public corporations, (b) the numbers employed in each sector thus detailed, (c) the total value of the increases in cash limits and other provisions made for increased costs directly attributable to the imposition of the surcharge and (d) his approximate estimates of the total wage and salary bill in each sector distinguished.

Mr. Joel Barnett,

pursuant to his reply [Official Report, 24th July 1978; Vol. 954, c. 508–9], gave the following information:

The additional 1½ per cent. national insurance surcharge is estimated to cost the public sector £200 million in 1978–79, distributed as follows:

Central Government £55 million
Local Authorities £70 million
Armed Forces £10 million
Public Corporations £65 million

At June 1977 the numbers employed in each sector were:

Central Government 1,978,000
Local Authorities 2,995,000
Armed Forces 327,000
Public Corporations 2,086,000

Only the health authorities and rate support grant cash blocks are involved. On the health authorities I refer the hon. Member to the reply of my hon. Friend the Minister of State, Department of Health and Social Security, Official Report, 14th July, c. 639. The effect on the cash limits for the rate support grant purposes will be published in due course. On nationalised industries, I refer the hon. Member to my reply of 7th July.

In 1976, the latest year for which figures are available, the total wage and salary bill, including employers' national insurance and superannuation contributions, in each sector was:

Central Government £6,786 million
Local Authorities £9,184 million
Armed Forces £1,857 million
Public Corporations £8,608 million

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