Controversially, it was revealed that National Insurance contributions will rise for the self-employed.
Under proposals, Class 4 NICs will increase from nine per cent to 10 per cent next April and to 11 per cent in 2019.
Trying to defend what will undoubtedly be a contentious move, the Chancellor said that the “unfair discrepancy” in contributions between different groups of workers could no longer be justified. Critics have suggested the move has broken with a commitment in the 2015 manifesto.
In more positive news, the personal allowance will rise to £11,500 – the seventh consecutive increase.
The Chancellor reiterated the Government’s previous commitment to increase the allowance to £12,500 and the higher rate threshold to £50,000 by the end of the Parliament in 2020.
There was a boost for road users with confirmation that vehicle excise duty for hauliers and the HGV road user levy will both be frozen.
The Chancellor also announced there would be no change to the previous planned duties on alcohol and tobacco. There will, however, be a new minimum excise duty on cigarettes based on a £7.35 packet price.
Leave a Reply