HC Deb 11 December 1980 vol 995 cc476-7W
22. Mr. Whitehead

asked the Chancellor of the Exchequer what representations he has received about the increases in national insurance contributions which he announced on Monday 24 November.

Sir Geoffrey Howe

I refer the hon. Member to the reply I gave earlier today to the hon. Member for Keighley (Mr. Cryer).

31. Mr. John Evans

asked the Chancellor of the Exchequer what representations he has received from organisations and individuals about the level of employers' national insurance surcharge.

Sir Geoffrey Howe

I have received representations from three bodies about the effects on employers of the level of the national insurance surcharge since my announcement of the changes in national insurance contributions on Monday 24 November.

44. Mr. Kenneth Lewis

asked the Chancellor of the Exchequer what is the likely effect on revenue from the national insurance employers' charges if wages and salaries go up by an average of 10 per cent, in 1980–81 and 8 per cent, in 1981–82.

Mr. Biffen

The question cannot be answered using the percentages given by my hon. Friend without incurring unreasonable expense. However, on the basis of calculations already undertaken by the Government Actuary, I can say that if average earnings in 1980–81 were 1 per cent, lower and in 1981–82 2½per cent, lower than the assumptions given, this would reduce employers' contributions by £39 million in 1980–81 and by £224 Million in 1981–82. In addition, there would be reductions in respect of the national insurance surcharge of £17 million in 1980–81 and £99 million in 1981–82.