Mixed reaction to ‘Spreadsheet Phil’s’ budget
With British industry giving the Chancellor’s budget the thumbs up for his plans on business rates, there are misgivings over the hike in national insurance for the self-employed.
Monday, 13 Mar 2017 14:40 GMT
The Chancellor Phil Hammond unveils his first budget
Holding his red chancellor’s box, Phil Hammond pledged £435m for firms affected by increases in business rates. Companies that were losing small business rate relief will benefit from a cap that prevents their bills increasing by more than £50 a month he said. The occupant of number 11 Downing Street said he will provide local authorities with £300m to deliver discretionary relief from those facing large bills.
In response, the British Chambers of Commerce said: “The business communities hardest-hit by this year’s business rates revaluation will breathe a little easier thanks to the Chancellor’s decision to offer a package of transitional reliefs. We now challenge councils across England to use every penny of the new funding announced by the Chancellor to offer relief to the hardest-hit businesses in their areas, without excuses and without delay.
The increase in National Insurance (NI) for the self-employed could have a significant effect on the sign industry. A large number of owners of signage firms, as well as other related businesses such as delivery drivers, are self-employed. They will pay an average of £240 a year more but the Chancellor said those earning £16,250 or less will see their NI contributions fall. The hike has now been put back until the autumn following criticism from Conservative MPs, the opposition and the Tory press.
This was the reaction of the Daily Telegraph: “The Chancellor apparently believes that everyone who is self-employed has freely chosen to be so largely in order to pay less tax. And even more antisocial, Mr Hammond says, are those who make the further iniquitous decision to incorporate - that is to turn themselves into small businesses thus giving themselves what Mr Hammond described as even more “unfair” tax advantages. Does he have no understanding of the fact that there are vast tranches of life in which there is no choice at all for individuals who wish to practise their vocations but to be self-employed?”
