Chancellor scraps self-employed tax hike
The u-turn was announced in a letter to Conservative MPs following a party outcry that the move broke a manifesto pledge made before the last election.
In his letter, Hammond said: “It is very important both 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.
“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.”
Under original plans announced during last week’s Budget, Hammond said Class 4 NICs would increase from 9% to 10% from April 2018 and by a further 1% to 11% in 2019.