Bright Blue, the independent think tank for liberal conservatism, has criticised the Government's decision to reverse the rise in Class 4 NICS for the self-employed from 2018
Commenting, Ryan Shorthouse, Director of Bright Blue, said:
“It was perfectly reasonable and justifiable to narrow the gap in the contributions made by the self-employed and employees to the public purse. Bright Blue's research first showed the discrepancy in the amount of National Insurance contributed by employees and the self-employed on the same income. This discrepancy exists even when the self-employed are pretty much entitled to the same public services and government benefits that employees are, apart from paternity pay and more generous maternity pay, which the government announced they were consulting on and going to change anyway.
Employees, who represent the majority of taxpayers in this country, should be angered by an ongoing situation where there are people who contribute significantly less than them to the public purse, despite earning and pretty much benefiting the same.
"The finances of the lowest earners in this country - who the Prime Minister has described as 'just about managing' - are being hit by the the ongoing and deep cuts to in-work benefits in this Parliament, introduced by the last Chancellor. The focus of government should be softening these cuts, not reversing the Class 4 NICS rise".