Oral QuestionTreasury

What assessment she has made of the potential impact of the planned increase in employer National Insurance contributions on economic growth.

Tabled: 26 February 2025Answered: 4 March 2025

Asked by

Munira Wilson

Liberal DemocratTwickenham

Answering Minister

the Chancellor of the Exchequer

Answer from Hansard

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.