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: firstname.lastname@example.org 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
IFG - Ministers are undermining their own efforts to increase private investment in infrastructure18/01/2018 09:35:00
Ministers are hampering progress towards their own objective of increasing private investment in UK infrastructure at a good price, a new report finds.
NIESR: Head of UK Macroeconomic Forecasting reacts to the latest CPI inflation data17/01/2018 12:05:00
NIESR’s Head of UK macroeconomic forecasting, Amit Kara said: “CPI inflation eased to 3.0 per cent over the 12 month period to December from 3.1 per cent in November. We think that inflation has now peaked and will gradually drop back towards the 2% target, provided that monetary policy is set appropriately.
JRF - Problem debts: Households in poverty face a difficult 201816/01/2018 14:35:00
Helen Barnard, Head of Analysis at the independent Joseph Rowntree Foundation, responded to the IFS report on problem debt and low-income households
IPPR - Carbon budgets should be devolved so regions can lead UK in realising economic benefits of decarbonisation16/01/2018 13:35:00
IPPR sets out a plan for empowering regions to deliver a national decarbonisation ‘mission’
IFS - Most household debt looks manageable – but a quarter of very low-income households have high debt repayments or are behind on bills or repayments16/01/2018 12:35:00
The size of overall unsecured household debt tells us little about how much ‘problem debt’ there is. Over 60% of unsecured debt is held by households with above-average incomes, and more than half of households with unsecured debts have more than enough financial assets to pay them off.