Hammond scraps hike to National Insurance

Chancellor Philip Hammond has announced the Government will not proceed with the controversial increase to National Insurance contributions in this Parliament.

In the Budget, the Chancellor announced the rate for Class 4 NICs would rise from 9 per cent to 10 per cent in April 2018, and to 11 per cent in 2019.

The BBC reports Hammond has admitted the increase broke the Conservatives’ manifesto pledge.

Last week Prime Minister Theresa May said while the self-employed did have an “unfair” tax advantage, legislation on the increase would not be put before MPs until at least the autumn.

Hammond will set out the rationale for the U-turn in a House of Commons statement later today.