Government U-Turns On National Insurance Changes
21 March 2017
The UK Government has canceled planned increases to the rate of National Insurance Contributions for the self employed.
Chancellor Philip Hammond was forced to back track on a key budget policy following claims from the media that the Budget breached manifesto commitments and rebellion from Conservative MPs.
In the 2015 Conservative election manifesto the party vowed not to increase the rates of VAT, Income Tax or National Insurance. However, when the Government enshrined this commitment into law with the National Insurance Contributions (Rate Ceilings) Act 2015, the act only applied to the Class 1 contributions payed by employers and employees.