Philip Hammond has abandoned plans to raise national insurance for self-employed workers in this Parliament, after admitting that it breached the “spirit” of the manifesto. Originally Hammond had announced that the rate would rise from 9% to 10% from 6 April 2018, and again to 11% from April 2019.
In a letter sent to MPs outlining the decision, Hammond stated “however difficult the fiscal challenges we face, the tax lock and spending ring fence commitments we have made for this Parliament should be honoured in full”. He further went on to say that the cost of the change will be funded by measures to be announced in the Autumn Statement.
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