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The Chancellor of the Exchequer, Philip Hammond, has announced that the government no longer intends to increase class 4 National Insurance contributions (NICs) as indicated at the Spring Budget 2017 (see: Spring Budget 2017—Income tax and NICs). The government previously announced that there would be an increase in class 4 NICs paid
by the self-employed from 9% to 10% in April 2018 and to 11% in April 2019.
The U-turn less than a week after the Spring Budget follows a backlash from Conservative backbenchers who claimed the Chancellor had broken an election manifesto commitment not to increase National Insurance contributions, income tax or VAT.
See: Letter from Chancellor to Chairman of Treasury Select Committee on National Insurance Contributions for the self-employed and
House of Commons Statement (15 March 2017).
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