Baroness Lister of Burtersett – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Baroness Lister of Burtersett on 2015-11-18.

To ask Her Majesty’s Government what assessment they have made of the additional anticipated receipts for HM Treasury as a result of the implementation of the National Living Wage in each year from 2016 to 2020.

Lord O’Neill of Gatley

As set out in Table B.3 of their July 2015 Economic and Fiscal Outlook, the Office for Budgetary Responsibility estimate that, in 2016-17, the National Living Wage will leave receipts broadly unchanged. In 2017-18 and 2018-19, income tax and National Insurance Contributions (NICs) receipts are projected to stay constant but the overall impact of the policy on the public finances is forecast to reduce public sector net borrowing by £0.1bn. In 2019-0 and 2020-21, the policy is expected to increase income tax and NICs receipts by £0.1bn and reduce public sector net borrowing by £0.2bn.