UK chancellor raises national insurance payments for self employed in new budget

Friday, March 10, 2017

UK chancellor Philip Hammond announced his 2017 budget on Wednesday, which included a £2 billion pledge to social care and a tax hike on the self-employed. It was accused of breaking Conservative Party manifesto promises.

It was announced there will be a 2% increase in national insurance contributions for the self-employed, with chancellor Philip Hammond citing worries that people were choosing to become self-employed in order to pay lower taxes and his perception of unfairness in the different rates paid by employees and self-employees. There were accusations this change in policy goes against the manifesto promises the Conservative Party ran on in 2015, which promised four times that there would be no increase in national insurance rates. Conservative MP Anna Soubry tweeted saying she believed these new measures would be unpopular as many would see them as unfair. The leader of the opposition, Jeremy Corbyn, claimed the new measures will not clamp down on people whose self-employment is just for tax benefits, instead causing problems for those legitimately self-employed, arguing that if they are to start paying similar tax rates to the employed then they should get rights such as statutory maternity pay. The think tank Resolution claimed, however, this increase is outweighed by other government policies and is, therefore, a good move.

In addition to this, the chancellor announced a £2 billion pledge to social care over the next three years, saying he was aware of the stress the ageing population is having on the NHS and social care. Liberal Democrat Norman Lamb described the amount as "wholly inadequate", saying much more is needed to pay for an increase in care demands due to the ageing population. The lowest threshold at which shareholders pay dividend taxes is to be lowered from £5,000 to £2,000 claiming that the taxes for dividends provided "an extremely generous tax break for investors with substantial share portfolios". Other budget announcements include an additional £325 million for the NHS, £90 million transport spending for the North of England, £20 million to support campaigning against violence against girls and women and a slight increase in funding for the devolved governments.

Have an opinion on this story? Share it!

Sources

"Budget 2017: £2bn for social care and tax rise for self-employed" — BBC news online, March 7, 2017
Heather Stewart, Anushka Asthana and Katie Allen. "Philip Hammond breaks manifesto pledge with budget tax grab" — Guardian online, March 7, 2017
Tara Cunningham, Sam Dean and Laura Hughes. "Budget 2017: Chancellor Philip Hammond accused of breaking Tory election promise as he hikes taxes on self-employed" — Telegraph, March 7, 2017

Share this:

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License