Budget National Insurance hike for self-employed needs to go
Not surprisingly, the Budget announcement of a hike in National Insurance contributions for those who are self-employed has caused something a furore – not least because it contradicts the Tories’ 2015 GE manifesto not to raise NI levels.
It’s an issue that is of particular concern in Worthing. The latest figures show that 11,100 men and women living in Worthing are self-employed, accounting for over 17% of those of working age – far greater than the national average of 10%. And looking at the separate data for men, almost a quarter in Worthing are self-employed.
Self-employment is hugely important to the town and those living in it and it is grossly unfair that the those choosing to take the risks associated with this option have been singled out for this hike in taxes without proper consultation or consideration of the impact.
The Chancellor argued that the increase in National Insurance was removing an unfairness in the different contribution made by those employed and the self-employed. But as the many self-employed people in Worthing know, there is no fairness or equality in the benefits they are eligible for. There’s no sick pay, holiday pay, or employer pension contributions, and as I know from the 10 years that I was self-employed, work can get cancelled at any time with no compensation.
The Tories have tried to argue that they are on the side of ordinary working families. But the truth is clear from their budget priorities. They believe it is acceptable to go ahead with £70 billion worth of tax giveaways to those at the top, while introducing a £2 billion tax hike for low and middle earners who are self-employed.
It is right that we should keep changes in employment patterns under review and be ready to consider whether taxation and benefits need to change as a consequence. But this needs to be a carefully considered process and not thrown into a budget to plug a hole in the Government’s finances. The Prime Minister should do the right thing and not just delay these tax changes, but remove the uncertainty and withdraw them now.
