NI hike and cuts

Ian Lewis (Letters, 6 April) has misread my letter (3 April) about the National Insurance contribution hike.

It should be obvious, and I stated the case, that the 1 per cent hike applied to the wage bill aspect of public spending, although I did not make clear, because it should have been a given, that the increase would apply with a band of certain lower earnings levels being excluded.

In normal circumstances, the proceeds from an NI hike would be spent somewhere on public services, but this time, by Labour's own definition, they would be put towards its 167 billion deficit.

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I also mentioned that, so far as the public sector is concerned, spending on services would be cut by the amount of the extra NIC paid to the Treasury.

It is identical to when Mr Lewis's tax goes up – his gross pay would remain the same, but he would be worse off.


Thomson Crescent