Philip Hammond cancels self-employed National Insurance increases

The chancellor has announced that controversial increases to National Insurance for the self-employed will no longer be introduced.

Revealed in last week's Spring Budget, the move led to strong criticism by business groups, including Enterprise Nation, that it was an attack on business owners who take risks to build a company.

But in a letter written to Conservative MPs, Philip Hammond says the changes will no longer be introduced during the current Parliament.

"In light of what has emerged as a clear view among colleagues and a significant section of the public, I have decided not to proceed with the Class 4 NIC measures set out in the Budget. There will be no increases in NICs rates in this Parliament," he said.

Emma Jones, founder of Enterprise Nation, said: "Our response to last week's Budget has been strong and unequivocal in opposition from the get-go; the rise in National Insurance for the self-employed was not only an unfair, easy tax grab, it also sent a message to hard-working entrepreneurs that the government is not supportive of their endeavours.

"The fact that there has been a speedy u-turn suggests we were absolutely right."