We are abandoning NI raids on self-employed, minister confirms

PLANS to raise National Insurance contributions for self-employed workers have been ditched, Theresa May’s deputy confirmed yesterday.

First Secretary of State Damian Green said there were no proposals to ‘revisit’ Philip Hammond’s £2billion raid on 2.5million self-employed people, which was scrapped days after he announced it in the March Budget.

The Chancellor was forced into a humiliating U-turn after being accused of breaching the Conservatives’ 2015 manifesto pledge not to raise taxes.

However, this year’s manifesto left the door open for NI to be increased and Mr Hammond had suggested the issue could be revisited when Matthew Taylor’s report is published.

But Mr Green said the report had avoided making any recommendations on tax, adding : ‘We won’t be revisiting [NI]... the House of Commons has already spoken on that.’

The decision means Mr Hammond now faces the task of plugging a black hole in his spending plans.

The £2billion in revenue over four years had been earmarked for helping to resolve the social care crisis.

Ministers say the money for social care will still be found, but it is not now clear where it will come from.

The NI rise is the latest Tory idea to be jettisoned in the wake of last month’s election. Ministers have already abandoned plans to means-test the winter fuel allowance, scrap free school dinners for infants and hold a free vote on repealing the foxhunting ban.