Chancellor’s National Insurance plans dropped
An increase in National Insurance rates for self-employed people announced by the Chancellor, Philip Hammond, in last week’s Budget has been scrapped.
The Chancellor told the House of Commons in a statement: “There will be no increases in National Insurance rates in this Parliament.”
The proposed increase would have cost an average self-employed person £240.
Mr Hammond had come under heavy fire from the backbenches of his own party, who accused him of breaking a general election manifesto promise not to increase National Insurance.
In his letter, the Chancellor said: “In light of what has emerged as a clear view among colleagues and a significant section of the public, I have decided not to proceed with the Class 4 NIC measures set out in the Budget.
“There will be no increases in NICs rates in this Parliament. We will continue with the abolition of Class 2 NICs from April 2018.
“It is very important both to me and to the Prime Minister that we are compliant not just with the letter, but also the spirit of the commitments that were made.”
The Prime Minister, Theresa May, said the government would await the Taylor Report’s publication on the future of employment and reflect on the Government’s overall approach to employment status, rights and entitlements before deciding on their next move.
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