Oral Answers to Questions

Debate between Monica Harding and Munira Wilson

Tuesday 4th March 2025 Commons Chamber

[Monica Harding (Esher and Walton) (LD)]

3. What assessment she has made of the potential impact of the planned increase in employer national insurance contributions on economic growth.

[Munira Wilson (Twickenham) (LD)]

20. What assessment she has made of the potential impact of the planned increase in employer national insurance contributions on economic growth.

[The Exchequer Secretary to the Treasury (James Murray)]

The Government have taken difficult decisions to repair the public finances, fund public services and restore economic stability. The Office for Budget Responsibility predicts that the employer national insurance contribution changes

“will reduce the level of potential output by 0.1 per cent at the forecast horizon”.

It also predicts that growth will pick up next year and that living standards will rise faster during this Parliament than during the last, and in the long term it expects the autumn Budget policies, if sustained, to increase the size of the economy permanently.