§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer what is the estimated full-year revenue effect in 1987–88 and 1988–89 of(a) abolishing the upper earnings limit for employees' national insurance contributions, (b) allowing personal allowances against such contributions and (c) (a) and (b) together.
§ Mr. Norman Lamont[holding answer 17 December 1987]: Estimates given in the table are based on projections of the 1984–85 survey of personal incomes and are therefore provisional.
Full Year Reduction (-)—Increase (+) in Yield from Employees National Insurance Contributions (£ million) At income levels of 1987–88 1988–89 (a) Abolition of upper earnings limit 1,200 1,400 (b) Charge contributions above personal allowances only -4,100 -4,400 (c) (a) and (b) together -2,900 -3,000 These estimates make no allowance for behavioural or other changes.