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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: nchesterfield@iea.org.uk 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.
