HC Deb 13 May 2002 vol 385 c432W
Mr. Flight

To ask the Chancellor of the Exchequer what estimate he has made of the impact on VAT revenues of the 1 per cent. rise in employers' national insurance contributions from April 2003; whether this impact is included in the revenue estimates published in Table A.1 of the Red Book; what estimate he has made of the cost to the public sector of higher VAT charges resulting from the rise in employers' national insurance contributions; and whether the impact on public sector VAT bills of a higher rate of employers' national insurance has been included in his estimate of the total cost to the public sector of the increase in employers' national insurance contributions. [53627]

Mr. Andrew Smith

The net Exchequer effect of a Budget measure is generally calculated as the difference between applying the pre-Budget and post-Budget tax and benefit regimes to the levels of total income and spending at factor cost expected after the Budget. Separate estimates of the impact of individual measures on overall levels of income and spending are not available; any such effects will, however, be taken into account in the forecasts of the economy and public finances as set out in chapters B and C of the "Financial Statement and Budget Report".

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