Hammond left red-faced over Budget NI U-turn

THE Chancellor has been forced into an embarrassing U-turn over his announcement to hike National Insurance contributions for the self-employed.

It has been revealed the policy will be scrapped just a week after he made it in the first place.

His plan was to raise £2bn by increasing contributions of self-employed people over the next four years to be almost equal to those of employees.

However after a furious backlash from small businesses, opposition parties and even some Tory beck-benchers, he has changed his mind.

Mr Hammond told the House of Commons: “In the 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 National Insurance Contributions measure set out in the Budget.”

Labour shadow Chancellor John McDonnell said it was “shocking and humiliating” for the Chancellor to have to admit the U-turn, which the SNP’s Angus Robertson described as “screeching and embarrassing”.

Jeremy Corbyn said it was “chaos”.

Business leaders in Scotland welcomed the change of policy.

Andy Willox, FSB’s Scottish policy convenor, said: “Self-employed people from Plymouth to Peterhead will be breathe a sigh of relief that the Chancellor has come to his senses.

“He’s made the right choice, realising that it doesn’t make sense to squeeze the nation’s strivers while trying to deliver a business boom.”