Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Hammond shelves national insurance hike for self-employed

The government has dropped plans to raise national insurance payments for the self-employed. 

Chancellor Philip Hammond has written to Tory MPs telling them there will no increase in national insurance payments “in this parliament”. 

Mr Hammond had previously unveiled plans in last week’s Budget to increase contributions. The move was heavily criticised for apparently breaking a 2015 Conservative manifesto pledge. 

Latest data from the Office for National Statistics shows the construction industry has around 940,000 self-employed workers, out of a total of 2.3m employees across the sector. 

The chancellor said he had made the decision to drop the changes “in the light of the debate of the last few days”, according to a letter published in the Guardian

Class 4 national insurance contributions were due to rise from 9 per cent to 10 per cent next April, and to 11 per cent in 2019.

The move was aimed at addressing the fact that employees were taxed more heavily than the self-employed. 

In his letter to MPs, the chancellor said he would continue with the plan to abolish class 2 national insurance contributions from April next year. 

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.