The Liberal Democrats have criticised the Chancellor, Philip Hammond, saying he has broken a Conservative manifesto pledge by introducing a tax on entrepreneurs and “white van man” with a rise in National Insurance Contributions (NICs) that the Lib Dems say will cost them £93 by next year. However independent analysis says the rise will cost self-employed people who affected by the rise paying a further £240 a year.
The Liberal Democrats point out that while the Government are increasing National Insurance Contributions they are going ahead with cuts in corporation tax will. The Liberal Democrats also acknowledge that the government have not asked wealthy pensioners to pay a greater share.
The Liberal Democrats say that the tax will hit five million people, the Treasury say 2.48m people will be affected by the rise of Class 4 NICs. The Liberal Democrats point out that the changes to NICs breaks a Conservative manifesto promise not to increase National Insurance in 2015.
Liberal Democrat Shadow Chancellor Susan Kramer said: "This is a tax on builders, taxi drivers and window cleaners, some of Britain’s hardest working people. This hits the gig economy where people are already insecure and facing rising prices and job uncertainty. And on International Women’s Day it will hit over one and a half million women."
"Companies will continue to save money by using workers without giving them the security and benefits of staff jobs. Meanwhile, these workers will have to pay more. This is patently as unfair as it is a tax on entrepreneurship and hard work." Baroness Kramer added.