Iain Duncan Smith calls for National Insurance hike ‘review’
Written by News on 09/03/2017
Former work and pensions secretary Iain Duncan Smith has urged the Chancellor to review the National Insurance contribution hike for millions of self-employed workers.
The move announced by Philip Hammond in his first Budget has stirred a row amid accusations he broke a Tory pledge before the last election not to raise the National Insurance and other tax.
Several Conservatives have voiced concern over the move, saying it unfairly targets small businessmen whose risk-taking greatly contributes to economic growth.
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Mr Duncan Smith, a former Conservative leader, told Sky News’ All Out Politics that he hoped Mr Hammond would reflect on the decision in the period before the autumn Budget.
"I would like for this period to have a chance to reflect on that," Mr Duncan Smith said.
"I would like to see this kept under review," he added.
"I would like to see the ball kept in play, because it doesn’t land until next year, so there is plenty of scope to look how this actually affects them and to listen to business representatives etcetera."
Under the measure, class 4 contributions, which are paid by those with profits of £8,060 or more a year, will rise by 1% to 10% in 2018, with a further 1% increase in 2019.
Mr Hammond has said he was "prepared to listen to backbenchers" on the issue.
But he said the move was aimed at addressing what he said was the unfair difference in tax treatment between the employed and a growing number of self-employed workers who share similar access to state benefits.
He also said the move was in response to new uncertainty facing the country because of the vote to leave the European Union and impending negotiations with Brussels.
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But several Tories have demanded a rethink before the changes come into effect, with some calling it an "unforced error".
Stevenage MP Stephen McPartland said the move was "taxing those families who have taken on the risk of setting up their own small business, many of which employ apprentices and are the backbone of our economy".
Backbenchers Tom Tugendhat, Jacob Rees-Mogg and Nigel Mills were also among the critical voices.
(c) Sky News 2017: Iain Duncan Smith calls for National Insurance hike ‘review’
