LONDON — The Chancellor Philip Hammond has broken a key Conservative party pledge not to raise National Insurance contributions.
The party’s 2015 manifesto promised that there would be “no increases in… National Insurance contributions”
However, the chancellor confirmed today that self-employed people will in fact be hit by a new national insurance hike.
He said the current situation, which sees self-employed workers pay lower national insurance rates, “undermines the fairness of our tax system”.
“The employed and the self-employed use public services in the same way but the lower National Insurance contributions from the self-employed will cost the public £5bn this year alone,” he told MP
“This is not fair to employees.”
Self-employed contributions will now rise from 9% to 10% in 2018, and then to 11% in 2019.
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