Government warned not to revisit the NIC hike

by Susie Hughes at 10:51 21/06/17 (News on Business)

As the self-employed community continues to grow, one representative body has warned the Government not to revisit its failed plans for a national insurance hike.

A two per cent increase in NICs for the self-employed was announced in the Spring Budget, only for the Government to be forced into an embarrassing U-turn and abandon plans following an outcry from the small businesses community. The Federation of Small Businesses (FSB) launched a 'Stop the 2%' campaign following the Budget announcement and has now renewed its call as a warning to the new administration. Mike Cherry, National Chairman at the FSB, said: “The self-employed community is an increasingly critical driver of economic growth in the UK. As the self-employed battle spiralling inflation and a new wave of political uncertainty, the last thing they need is for the Government to revisit failed plans for a national insurance hike. “Instead of hitting the self-employed with tax increases, this new administration should address discrepancies in the treatment of the self-employed and employees under the welfare system, such as wrestling with a Universal Credit system that’s incompatible with their unpredictable incomes. “In this unforgiving climate, the Government should be doing all it can to support the nation’s strivers. Bringing the Maternity Allowance closer in line with Statutory Maternity Pay and exploring the feasibility of Statutory Paternity Pay for all eligible self-employed parents would be a welcome starting point.” Brexit The group also reinforced its message in a response to Chancellor Philip Hammond’s Mansion House speech in London. Mr Cherry said: “The Chancellor’s speech is a positive sign that he is listening to the needs of the business community as we head into Brexit negotiations and the next Parliament. Advertisement “The Chancellor has listened to small business calls for a transition period after Brexit. Any sudden cliff edge preventing small firms from accessing the workers they need or disrupting trade with the EU single market would be hugely damaging for small firms and the wider economy. So, it’s crucial that small businesses are given time and support after the UK leaves the EU to prepare for new arrangements. “In the negotiation itself, small businesses are looking to the Government to secure an ambitious free trade agreement with the EU, while still allowing small firms to retain access to the skills and labour they need to grow and prosper. "While Brexit is the dominant issue of the day, our members are increasingly concerned about the weakness in the domestic economy. We therefore welcome the Chancellor's commitment to a low tax burden. "However, we urge Philip Hammond as soon as possible to rule out a national insurance hike on the 4.8 million self-employed, as well as unblocking the £300m funds which should by now have provided relief for those most affected by the recent business rates revaluation." Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2017

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