After listening to the public, there will be no increases in National Insurance rates in this Parliament, promises the Chancellor of the Exchequer
Sun readers, members of the public and others questioned whether the planned increase is consistent with the tax pledges
Philip Hammond
Chancellor of the Exchequer
TRUST matters in politics.
And this Government sets great store in the faith and trust of the British people.
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Sleeping on it . . PM and Hammond appear to doze in CommonsCredit: pixel GRG
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Philip Hammond announced the U-turn today after a week of ferocious backlash from MPs and self-employed workersCredit: PA:Press Association
Since the Budget last week, Sun readers, members of the public and others have questioned whether the planned increase in National Insurance for the self-employed is consistent with the tax pledges in our last manifesto.
After the 2015 Election, we acted to put those manifesto pledges into law and explained at that time that, when it came to National Insurance, this would apply to the main rate of National Insurance.
But for the Prime Minister and me, it’s not enough simply to stay within the letter of our tax lock law.
It’s important that we meet the spirit of our commitment as well.
So after listening to the views of readers, MP colleagues and others, I announced that we will not go ahead with the changes to self-employed National Insurance.
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The Chancellor announced that there will be no increases in National Insurance ratesCredit: pixel GRG
I can say clearly to Sun readers that there will be no increases in National Insurance rates in this Parliament.
We will, though, continue with the abolition of the flat rate Class 2 National Insurance contributions. This hits those with the lowest profits the most. It’s right it should go. We will also continue to look at what more we can do to address the difference in access to things like parental benefits for the self-employed.
By making these changes, I hope we have shown we are listening to people and demonstrating our determination to keep to both the letter and the spirit of our commitments.
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