The Chancellor, Philip Hammond
The Chancellor, Philip hammond a week to the day has scrapped plans to increase National Insurance as pledged in last week’s Budget. He admitted that it does breach the Tory manifesto “Tax-lock” made in 2015, after there was angry backlash in the House of Commons this last week.
The Chancellor said in a letter today it’s “clear that compliance with the ‘legislative’ test of the Manifesto commitment is not adequate.”
“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 Class 4 NIC measures set out in the Budget.”
The Chancellor had pledged to raise £2bn for social care, now there is a staggering £2bn blackhole.
During PMQ’s today Theresa May who had defended the Chancellor announced the U-turn while Jeremy Corbyn accused her of “chaos” along with a “budget that has unravelled in seven days.”
Yvetter Cooper MP for Labour: “The Prime Minister has just done a £2bn Budget u-turn in the space of about a week.
“Last year the Government did a £4bn U-turn in the space of five days.
“Is that why they want to abolish spring budgets? Because they just keep ripping them up?”
John McDonnell the Shadow Chancellor blasted this U-turn saying: “This is chaos. It is shocking and humiliating.”
Mr Angus Robertson MP for the SNP’s said: “it’s a screeching, embarrassing U-turn”.
Whilst Tim Farron, Liberal Democrat leader said: “The Conservatives have bodged every Budget since the election and have lost the right to call themselves the party of business.”
In what was a damning blow to the Tory party in today’s PMQ’s the Chancellor said this afternoon to the Commons that it was right to address “the imbalance” of taxes paid by self-employed and the employed. With what was a weak defence, he added that the Prime Minister and he “listened to our colleagues, listened to the voices of public opinion.”