Why have the National Insurance increases for the self-employed been scrapped?


Phillip Hammond, Chancellor of the Exchequer. Foreign and Commonwealth Office

Why has Chancellor Phillip Hammond done a U-turn on plans to increase taxes for the self-employed?

It's because of the backlash that he got for his budget - which came because the Conservative manifesto had promised no rises in National Insurance rates. Many Conservatives also felt they should not be increasing taxes on entrepreneurs, and newspapers which normally back the Conservatives also were strongly against it. Writing in the Sun on 16 May, Mr Hammond said:

Trust matters in politics. And this Government sets great store in the faith and trust of the British people. 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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