Fury grows over broken promises
The Chancellor, Philip Hammond has defended his National Insurance hike for the self-employed saying it is “right and fair.”
Mr Hammond told Sky News “the move would make the system fairer by and denied it was an attack on self-employed workers.”
“It’s only right and fair we should take a small step to closing the gap between the treatment of employed and self-employed people,” he said.
High earning self-employed workers paying class 4 National Insurance contributions will rise to 10 percent in 2018 and then another rise of 1 percent in 2019. This 2 percent rise for 2.5m entrepreneurs will add up to £1,000 a year to tax bills.
This hike as angered many conservative MPs in a Budget backlash, as Mr Hammond has broken the 2015 election manifesto pledge to a “five-year tax lock” not to increase VAT, National Insurance and no income tax.