Chancellor performs U-turn on much-criticised budget
Plans to increase National Insurance rates for self-employed people – announced in the Budget last week – have been dropped.
Chancellor Philip Hammond has said the government will not proceed with the increases which were criticised for breaking a 2015 manifesto pledge.
Mr Hammond wrote a letter to his party’s MPs saying that following a backlash from the Conservative benches the measure would be ditched.
The issue dominated exchanges at PMQs, where Jeremy Corbyn accused May of presiding over “a government in a bit of chaos here”, which had produced “a budget that unravels within seven days”.
A hugely embarrassing situation for the PM, which she had to deal with at PM question time, earlier this afternoon, and it seemed the Tory party and supporters were left confused themselves with Rory Stewart defending the NI rise only minutes before the announcement was made.
Blimey. I've been vigorously defending it… https://t.co/WQKXZYWgaK— Ed Vaizey (@edvaizey) March 15, 2017
Cos it was a very sensible tax change. See, I'm still vigorously defending it. I wasn't being sarcastic https://t.co/pzCOGRrcz2— Ed Vaizey (@edvaizey) March 15, 2017