Budget backlash

Budget backlash



On Wed Phillip Hammond revealed he had decided not to proceed with his planned rise in National Insurance Contributions for the self-employed. The Chancellor had faced a backlash by Conservative backbenchers last week who accused him of breaking a general election manifesto commitment not to put up National Insurance, income tax or VAT.

Explaining his change of heart to MPs, the Chancellor said: “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. 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 Four NIC measures set out in the Budget. There will be no increases in NICs rates in this Parliament.”