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20 March 2017

NIC’s U-turn is a great victory for FSB’s self-employed members

Today’s announcement on the scrapping of the hike on Class 4 National Insurance Contributions (NICs) marks a victory for our economy’s strivers and risk-takers. The Chancellor has listened to the Federation of Small Businesses (FSB) and realised that targeting the self-employed with this tax-grab was nonsensical.

Mike Cherry, FSB National Chairman, said:

“We are delighted for our members and all the nation’s self-employed that the Chancellor has recognised the strong opposition to this measure, admitting it was against the spirit of the manifesto on which his party stood, and has now decided to scrap it for the duration of this parliament.

“The army of self-employed make a massive contribution to the UK economy. We’ve consistently argued, since this measure was announced last week, that a tax-grab on the genuine self-employed – the hairdresser, electricians and plumbers – makes absolutely no sense.

“We look forward to engaging with the summer review into the benefits that the self-employed need to be able raise families, pay the bills when sick, and prepare for retirement. We need to see what other measures are brought forward to make sure they support the UK's small business and self-employed community.”