The Mail on Sunday

You hit the pause button, Prime Minister, now find reverse!

- By ANNE-MARIE TREVELYAN CONSERVATI­VE MP FOR BERWICK-UPON-TWEED

AS A Conservati­ve MP in the North East of England, I know what a long, hard road it has been to spread the message of selfrelian­ce. Years of Labour pumping money into the region made it over-reliant on the State for employment and interventi­on.

Ten years ago, almost one in three people in this region were public sector employees – the highest proportion outside Northern Ireland. Today, that figure is down to 20 per cent.

But despite reductions to the number of public sector jobs here, unemployme­nt figures have remained low. Why? Because people have taken that leap to being self-employed, becoming reliant on themselves rather than the State for work. There are now more than 6,500 self-employed people in my constituen­cy alone.

The Conservati­ve Party has always sought to help those who put themselves out there, start new businesses and work hard to provide for themselves and their families. We have always encouraged self-starters and believe if you work hard, and do the right thing, you should be rewarded. Who are these selfemploy­ed people? They are hairdresse­rs, taxi drivers, journalist­s, IT consultant­s, plumbers and labourers.

For the vast majority, being selfemploy­ed is not a lucrative endeavour. There is no job security, often no guarantee of work or knowledge of when a lean spell might come. The selfemploy­ed do not currently enjoy the benefits enjoyed by employed people, such as paid holiday, paid sick leave or paid maternity or paternity leave. Time off is time spent not earning an income.

The lack of guaranteed income for the self-employed makes it hard for them to obtain credit or secure mortgages. It is a totally different working framework to those who are in employment.

So to talk of parity between the two is to misunderst­and that the two are simply not comparable.

Self-employed people are part of the backbone of our economy. They drive growth and innovation. I firmly believe the Conservati­ve Party should continue to encourage them, rather than increase their tax burden.

A Government that wants to see the economy grow and people succeed needs to encourage those who are willing to take the risk by offering a carrot of simpler taxes and less regulation, not higher taxes and more regulation.

The increase in Class 4 National Insurance Contributi­ons announced by the Chancellor in his Budget last week did not just concern me because I believe it is wrong in principle. It is also a clear breach of a promise we made in our manifesto not to increase VAT, income tax or National Insurance.

I am pleased the Prime Minister has stepped in to press the pause button on the planned rise, and to look at it in combinatio­n with a report on working practices as well as a Government consultati­on on introducin­g statutory maternity and paternity rights for the self-employed.

It would be wrong to contemplat­e increasing the tax burden on the self-employed without examining how to offer them similar benefits to those enjoyed by the employed.

If we use the tax system to punish entreprene­urship and growth creators, we should not be surprised if they become less willing to take the risks our economy needs them to.

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