To ask the Chancellor of the Exchequer what estimate he has made of the likely effect on the level of employment of a one percentage point increase in national insurance contributions. (322807)

For both small and large companies, the increase in national insurance contributions in 2011 represents only a very small proportion of their total costs. Therefore, in the climate of stronger economic growth forecast by the Treasury and independent commentators in 2011 and beyond, the Government expect the rise in national insurance contributions to be affordable, and any impact on employment to be limited. Past experience has shown such increases can be made without employment falling. The increase in 2011 is accompanied by an increase in the primary threshold to protect lower earners.