Hammond just said in the budget if your job’s insecure, then tough sh*t [TWEETS]

Hammond u-turn
Support us and go ad-free

Early on in Philip Hammond’s budget was an announcement that will affect millions of people. But it hits those who may already be in a vulnerable position: the self-employed.

Hit ’em hard

The Chancellor said that National Insurance Contributions (NIC) for self-employed people are going to increase. Currently, anyone self-employed has been paying a set £2.80 a week (Class Two NIC), but this stopped as of 31 January 2017’s tax return. And then, 9% on earnings over £8,060 (Class Four). Up to £43,000. But from 2018, Hammond will be increasing the Class Four contribution to 10%. And then by another 1% in 2019.

Hammond says this will raise £145m extra a year. But the Conservative Party manifesto in 2015 [pdf. p4] said:

We will not raise VAT, National Insurance contributions or Income Tax.

It also repeated the promise on pages eight and ten. So it would appear the Tories have gone back on their manifesto promise.

Hit ’em fast

The BBC’s Norman Smith bluntly said:

Read on...

And critics were quick to point out its faults:

Hit ’em low, Hammond

There are currently 4.75 million self-employed people in the UK; 15% of the entire workforce. On average, a self-employed person earns around £240 a week. But this is 15% less in real terms than in 1994/95. And when worked out as a yearly wage (£12,480), this is well below the national average of £27,600. So any rise in NIC will be hitting some self-employed people hard.

NICs were designed to pay for benefits, such as welfare payments and health service provisions. But with the NHS currently suffering a funding crisis and the welfare system constantly being ‘reformed’, the question could be asked exactly where this additional NI will end up? It certainly won’t be in the pockets of those already struggling.

Get Involved!

Read more from The Canary on Budget 2017.

Featured image via Flickr

We know everyone is suffering under the Tories - but the Canary is a vital weapon in our fight back, and we need your support

The Canary Workers’ Co-op knows life is hard. The Tories are waging a class war against us we’re all having to fight. But like trade unions and community organising, truly independent working-class media is a vital weapon in our armoury.

The Canary doesn’t have the budget of the corporate media. In fact, our income is over 1,000 times less than the Guardian’s. What we do have is a radical agenda that disrupts power and amplifies marginalised communities. But we can only do this with our readers’ support.

So please, help us continue to spread messages of resistance and hope. Even the smallest donation would mean the world to us.

Support us

Comments are closed