Conservative Party revolt threatens rises in NIC for the self-employed

The announcement, in the 2017 Budget, of increased National Insurance Contributions (NIC) for the self-employed has triggered a growing rebellion amongst Conservative MP’s.

According to figures expressed in The Guardian, there are at least 18 potential conservatives that oppose the NIC increase decision. Therefore this could determine the governments working majority vote: 17. 

The general concerns expressed from the Conservative MP’s about the NIC rise ranges from the perception that the rise unfairly targets the self-employed and entrepreneurs; as well as the fact that the 2015 Conservative manifesto promised no income tax, VAT or NIC rises before 2020.

While it is not certain what percentage of MP’s oppose the 2017 NIC changes, the numbers are likely to apply pressure on to Chancellor Hammond and the prime minster to reconsider the policy.

Chancellor Hammond has argued that higher NIC charges for the self-employed in fact narrows the gap between the self-employed and workers to promote fairness.

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