Tom today called the Chancellor’s decision to break a manifesto commitment not to raise taxes for the self-employed a ‘betrayal’.
The Chancellor announced an increase in National Insurance contributions demanded of the self-employed. This came as a surprise given the Conservative 2015 General Election Manifesto pledged ‘no increases in National Insurance’.
The self-employed on average work longer, earn less and have less security than employees.
Tom Blenkinsop said:
This is a real betrayal of the self-employed. It breaks a Conservative manifesto commitment and puts the burden on those taking risks and getting their own businesses off the ground. When I think of the self-employed in Teesside, like those running small business in Saltburn or those who set up their own businesses after losing their jobs in the SSI closure, I think of people taking risks and creating jobs for others. They won’t have planned for this change and it will just add to the pressure they’re already under
The Government promised not to increase National Insurance and they have. It’s not like they needed to do this – they’ve prioritised other things like cutting corporation tax and giving a tax break to those who inherit their wealth but have increased the burden on those trying to make their own way.
This and the tax credits cuts amount to a kick in the teeth for those Teessiders trying to step up their own businesses and create prosperity in their communities.
The Office for Budget Responsibility’s forecast for the future of the economy also downgraded their prediction of long term economic growth by 2020/21.