IEA - Hammond should scrap NI Contributions altogether
IEA reacts to Hammond's u-turn on National Insurance Contributions
Commenting on the Chancellor’s u-turn on higher National Insurance Contributions for the self-employed introduced in the Spring Budget last week, Julian Jessop, Chief Economist at the Institute of Economic Affairs, said:
“The Chancellor’s measure on National Insurance Contributions introduced last week was ill-thought through. The principle of aligning what the self-employed and employed pay is right, but cutting NICs for the latter rather than raising those for the former would have been a much better way of achieving this.
“Better still the Chancellor should have scrapped National Insurance Contributions altogether, including those paid by employers. They are a tax on jobs and wages and getting rid of the burden they place on working families would significantly help lower-income households.”
Notes to editors:
For media enquiries please contact Nerissa Chesterfield, Communications Officer: email@example.com or 0207 799 8920 or 07791 390 268
The IEA published Budget recommendations earlier this week, which can be downloaded here.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
Latest News from
NEF - New research: More than half of self-employed not earning a decent living17/08/2017 10:35:00
More than half of all self-employed people are failing to earn a decent living, according to new research by the New Economics Foundation.
JRF - Workers are facing falling living standards as the real-terms pay squeeze continues17/08/2017 09:35:00
Ashwin Kumar, Chief Economist at the Joseph Rowntree Foundation, responded to testerday's employment figures
NIESR: Head of UK macroeconomic forecasting Amit Kara reacts to the latest ONS CPI inflation data16/08/2017 13:05:00
Reacting to the latest CPI inflation figures released yesterday but the ONS NIESR’s Head of UK macroeconomic forecasting, Amit Kara said: “CPI inflation was 2.6 per cent over the 12 month period to July, unchanged from the previous month and broadly consistent with our forecast published in the August Economic Review.”
IFS - Men from poor backgrounds have lower earnings and are twice as likely to be single as those from rich families15/08/2017 11:35:00
In 2012, more than one-in-three men from disadvantaged backgrounds lived alone in their early 40s. This compared with only one-in-seven men from rich backgrounds living without a partner. This disparity has strengthened the link between the incomes of families across generations, thus reducing social mobility.