Prime Minister delays tax rise for self-employed

Speaking at a meeting of the European Council in Brussels yesterday, the Prime Minister Theresa May revealed the increase in National Insurance Contributions (NICs) for the self-employed, as announced in the Budget, will not be legislated for until the autumn, rather than this Spring as expected.

It follows a public rebellion by senior Conservatives, including Guto Bebb, the junior Wales Office minister who is also a whip.

He told BBC Radio Cymru, 'I believe we should apologise. I will apologise to every voter in Wales that read the Conservative manifesto in the 2015 election.'

A number of MPs and businesses have also voiced concern about the move, which will see Class 4 NICs for the self-employed rise from 9 per cent to 11 per cent by 2019.

The Prime Minister also said the measures would be packaged together with new rights and protections for the self-employed on issues like pension rights, parental rights and maternity pay.

Talking to reporters at the European Council, she said, ‘One of the first things I did as Prime Minister was to commission Matthew Taylor to review the rights and protections that were available to self-employed workers and whether they should be enhanced. People will be able to look at the Government paper when we produce it showing all our changes, and take a judgement in the round.

‘Of course the Chancellor will be speaking, as will his ministers, to MPs, businesses and others to listen to the concerns. As I’ve said, this leaves lower paid self-employed workers better off. It’s accompanied by better rights, and it reforms the system of National Insurance to make it simpler, to make it fairer and to make it more progressive.’

Matthew Taylor is the chief executive of the RSA and a former Downing Street adviser to Tony Blair.