Broken promise claim as National Insurance rises for self-employed

the Class 4 National Insurance contribution is changing and the manifesto commitment related to Class 1 National Insurance contributions so I don’t accept for a second that the pre-election commitment has been broken... This is about fairness.”

Labour deputy leader Tom Watson said the move was a clear breach of a promise to voters, saying: “The Tories put a promise not to raise National Insurance in their manifesto four times. Today they’re breaking that promise.”

Former Conservative minister Andrew Murrison told the Commons it was “vitally important” to ensure the change did not disadvantage “White Van Man”.

Liberal Democrat Treasury spokeswoman Baroness Kramer said: “This is a tax on builders, taxi drivers and window cleaners, some of Britain’s hardest working people. This hits the gig economy where people are already insecure and facing rising prices and job uncertainty.

“And on International Women’s Day, it will hit over one-and-a-half million women.”

However, Stephen Herring, the head of taxation at the Institute of Directors, said that while Mr Hammond would take “a lot of political pain”, he was right to start creating a “level playing field” for employees and the self-employed.

“There will be many contractors, people in traditionally self-employed occupations, and entrepreneurs who will pay more in National Insurance contributions because of these changes, but in a flexible modern economy this is a journey we were always going to have to embark on at some point,” he said.

Resolution Foundation director Torsten Bell said most self-employed people would actually be better off.

He said: “By abolishing Class 2 NICs and staggering the increase in Class 4 NICs, most self-employed workers will actually be better off next year, with higher paid accountants and management consultants taking the biggest hit.”

Mr Hammond was buoyed by a short-