Chancellor Philip Hammond has dropped his planned increase in National Insurance payments for the self-employed that was announced in the Budget last week.
In a letter to Conservative MPs, he said there would be no increase during this Parliament.
Scott Knowles, Chief Executive at East Midlands Chamber*, said: “The increase was very unpopular with the self-employed and its announcement in the Budget caused a massive backlash which included claims that it broke a promise made in the Conservative Party manifesto not to increase National Insurance Contributions (NICs).
“The NICs rise, together with the cut to dividend allowances, was not viewed favourably, so this latest move is welcome. Mr Hammond needs to look at business and employment taxation in the round to ensure it is competitive and equitable.
“At a time when UK plc needs to be encouraging entrepreneurialism, the NIC increase was seen to do exactly the opposite and it’s good for the self-employed, for the economy and for UK plc that Mr Hammond has reversed his decision.”
Got some exciting news you'd like to share with thousands of Chamber members across the East Midlands? Email your press release to: firstname.lastname@example.org
The Chamber produces a range of publications each month to ensure its members are kept up-to-date with all the latest news and updates from the local business community.
Exclusive to Chamber members, Members' Briefing contains vital information on the latest legislation as well as local, regional and national news that has an impact on your business.
One of the many great offers available to members: