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National Insurance Contributions

Volume 508: debated on Wednesday 7 April 2010

To ask the Chancellor of the Exchequer what assessment he has made of the effect on the level of unemployment in (a) the UK, (b) each region of England, (c) Scotland, (d) Wales and (e) Northern Ireland of the planned rise in the rate of National Insurance contributions. (325758)

I refer the hon. Gentleman to the answer given on 22 March 2010, Official Report, column 71W, to the hon. Member for Solihull (Lorely Burt). The effect is expected to be the same across the UK.

To ask the Chancellor of the Exchequer what assessment his Department has made of the effect on small businesses of the planned rise in the rate of national insurance contributions. (325759)

The national insurance contribution changes have been designed so that the impact is balanced fairly between individuals and employers, and between businesses of different sizes. The increase in national insurance contributions in 2011 represents only a small proportion of total business 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 an affordable contribution to fiscal consolidation.

This rise should also be seen in the context of the significant support available for businesses, including small businesses. Budget 2010 announced further measures, including an increase in the annual investment allowance, an extension of entrepreneurs' relief and a temporary increase in the level of small business rate relief.

To ask the Chancellor of the Exchequer if he will place in the Library a copy of his Department's impact assessment on the planned rise in the rate of National Insurance contributions announced in the pre-Budget report in (a) 2008 and (b) 2009. (325780)

An impact assessment, if necessary, will be published alongside the Bill which will introduce these changes. Impact assessments are not required where there are no associated administrative costs.