UK’s Hammond U-turns on national insurance hike

British chancellor of the exchequer Philip Hammond said on Wednesday he had scrapped a planned increase in an employment tax announced in last week's budget, reacting to a heavy criticism by those who said the hike breached his party's 2015 election manifesto.

The increase in national insurance contributions for some-self employed workers had been due to take effect from April next year.

Commitments

“In light of what has emerged as a clear view among colleagues and a significant section of the public I have decided not to proceed with the Class 4 NIC measures set out in the budget,” Mr Hammond said in a letter to Conservative MPs.

“It is very important to me and to the prime minister that we are compliant not just with the letter, but also the spirit, of the commitments that were made.”