National Insurance Surcharge

Part of Ways and Means – in the House of Commons at 12:00 am on 5 July 1978.

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Photo of Mr Geoffrey Howe Mr Geoffrey Howe , East Surrey 12:00, 5 July 1978

If the Chancellor was right when he said in his Budget statement that he did not want to increase the surcharge because it would have an adverse effect on unemployment and if other countries are right to be moving in the opposite direction for precisely that reason, what could be more foolish than the Government's decision to impose the proposed increase in the surcharge?

The effect of the Government's policy has been to achieve three results. Over their period in office, they have progressively diminished the rewards for going to work and being employed, they have progressively increased the rewards for not going to work and for being unemployed and, by the latest proposals, they have progressively increased the cost of employing people. In the light of those three factors, it is not in the least surprising that unemployment has risen and is likely to go on rising as a result of these measures.