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1979-1987 : Mr Major’s Written Parliamentary Answer on National Insurance Contributions

Below is the text of Mr Major's written Parliamentary Answer on National Insurance Contributions on 27th January 1987.


Mr. Yeo Asked the Secretary of State for Social Services what is his estimate of the direct revenue effect in 1986-87 of changing the rates of class 1 national insurance contributions in all earnings bands by one percentage point; and whether he will show separately the effect on employers' and employees' contributions.

Mr. Major It is estimated that such a change to all rates of employers' and employees' national insurance contributions in 1986-87 would have led to changes in receipts from employers and employees of £1,430 million and £1,290 million respectively.

Mr. Neil Hamilton Asked the Secretary of State for Social Services, what would be the cost of abolishing employers' national insurance contributions in all assisted regions.

Mr. Major [pursuant to his reply, 26 January 1987]: I regret that the information requested could be obtained only at disproportionate cost.