§ Mr. AllenTo ask the Chancellor of the Exchequer how much would be placed on the standard rate of income tax to raise the equivalent amount of(a) the employee's national insurance contribution and (b) the employer's national insurance contribution.
§ Mr. Norman LamontIt is estimated that, in a full year at 1989–90 levels of income, a 10p increase in the basic rate of income tax would yield the same amount as employees' national insurance contributions. A 12p increase would24W yield the same amount as employers' national insurance contributions. The estimates are provisional and do not allow for any behavioural changes.