§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will publish in theOfficial Report his latest estimate of the yield from an increase of 1p in the standard rate of tax and in the employees' and employers' national insurance contribution, respectively, in 1988–89; and if he will divide the tax figure to show the yield from earned and unearned income.
§ Mr. Norman Lamont[holding answer 27 July 1988]: An increase of lp in the basic rate of income tax is estimated 748W to yield about £1.4 billion in full year at 1988–89 income levels; 90 per cent, of the yield is estimated to be from tax on earned income.
An increase of 1 per cent, in class 1 national insurance standard contribution rates is estimated to yield employee contributions of £1.75 billion and employer contributions of £2.0 billion in a full year at 1988–89 income levels.