collected by :Maolly Tony
As it stated in
Chancellor Philip Hammond has defended his 2% hike on National Insurance, insisting it will result in the self-employed making a “fair contribution” to public services.
Ministers have rejected calls for a re-think of Philip Hammond’s £240 Budget hike in National Insurance contributions for 2.5 million self-employed amid Tory fears it will hit traditional supporters.
“I’ve had to ask the self-employed to pay a little bit more National Insurance in order to make a fair contribution for the services that they receive from Government.”
But Mr Hammond insisted Britain’s circumstances had “moved on” since the 2015 election as a result of the vote to leave the European Union.
Conservative MP Anne-Marie Trevelyan said the NICs announcement broke the manifesto commitment and was “going in the wrong direction”.
The 2015 Conservative election manifesto repeatedly pledged that “we will not raise VAT, National Insurance contributions or Income Tax” .
Independent white van traders and freelancers are likely to be worst hit by the policy, which will raise the tax rate twice in the next two years ahead of Brexit.
The Chancellor has broken the Conservatives’ manifesto pledge not to raise National Insurance contributions after increasing the headline rate of the tax for some workers in his Budget.
On another page the document stated that “we can commit to no increases in VAT, Income Tax or National Insurance.
Speaking after the Budget announcement David Gauke, the chief secretary to the Treasury, defended the decision to break the manifesto promise.