Taxing figures

Douglas Mayer's statement (Letters, 3 April) that the proposed 1 per cent increase in employers' national insurance contributions will lead to a 1 per cent cut in public sector expenditure is wrong on two counts. First, expenditure will be unchanged; only some of it will be spent differently. Second, as public sector expenditure is based on more than wage costs, increasing NI by 1 per cent in no way equates to reducing total expenditure by 1 per cent.

IAN LEWIS

Mayfield Terrace

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