Express & Star comment: NI increase is real kick in the teeth

As we know, hard-working entrepreneurs are the backbone of the British economy, creating jobs for others and keeping money local rather than feeding into large conglomerates often overseas.

The Chancellor’s decision to increase the rate of National Insurance for the self-employed is misguided.

During the depths of the recession and hardship of the credit crunch, it was entrepreneurs who dug us out of the mess.

Their creativity and bravery in taking a punt and putting themselves at potential financial risk needs to be commended not punished.

While those in employment with a company on the whole pay 12 per cent National Insurance, those who are self-employed currently pay nine per cent. This not only reflects the uncertainty of their annual income but also takes into account that the self-employed do not always have the benefits or the protections enjoyed by those in conventional work.

Under Mr Hammond’s measures the current self-employed rate of nine per cent will rise to 10 per cent in April 2018 and 11 per cent in April 2019.

This will raise £145m a year by 2021-22.

It compares to 12 per cent paid by the 85 per cent of employees.

Mr Hammond says the change reflects wider trends in the British economy and makes it fairer.

But his move risks stifling innovation and aspiration.

When Theresa May took office she stood on the steps of Downing Street and said she understood the struggles of those trying to make ends meet.

We would not expect tax rises under any Conservative Government.

The Government needs to think very carefully about the message it is sending out.

Interestingly there was no mention of the foreign aid budget.

So while British workers pay more, billions will still go to potentially dubious and corrupt regimes abroad.

As we leave the EU, we need to ensure that our economy is fighting fit to weather any storms that may come our way with economic uncertainty inevitably causing some turbulence.

We need to encourage enterprise and aspiration more than ever. It is that spirit that will see us make a success of Brexit.

Surely that is not too much to ask from this Conservative Government?