UK Parliament / Open data

Class 4 National Insurance Contributions

Ministerial statement on Wednesday, 15 March 2017, in the House of Commons, led by Lord Hammond of Runnymede.
Statement on national insurance contributions paid by the self-employed.

About these Parliamentary proceedings

Reference

623 cc420-443 

Session

2016-17

Department

Treasury

Chamber / Committee

House of Commons chamber
Deposited Paper DEP2017-0231
Wednesday, 15 March 2017
Deposited papers
House of Lords
House of Commons
National Insurance Contributions: Self-employed
Monday, 20 March 2017
Written questions
House of Commons
National Insurance Contributions: Self-employed
Monday, 20 March 2017
Written questions
House of Commons
National Insurance Contributions: Self-employed
Monday, 20 March 2017
Written questions
House of Commons

Show all related items (5)
National Insurance Contributions: Self-employed
Monday, 20 March 2017
Written questions
House of Commons

Proceeding contributions

Lord Hammond of Runnymede | 623 cc420-1 (Link to this contribution)

With permission, Mr Speaker, I wish to make a statement on national insurance contributions paid ...

John McDonnell | 623 cc421-2 (Link to this contribution)

This is chaos. It is shocking and humiliating that the Chancellor has been forced to come here to...


Show all contributions (147)
Lord Hammond of Runnymede | 623 c422 (Link to this contribution)

To echo what my right hon. Friend the Prime Minister said in Question Time, I am rather reluctant...

Lord Tyrie | 623 c423 (Link to this contribution)

This announcement bolsters trust in the Government’s other commitments, and removes the perceptio...

Lord Hammond of Runnymede | 623 c423 (Link to this contribution)

In the Budget speech last week, I made very clear that we were seeking to close the gap a little....

Stewart Hosie | 623 c423 (Link to this contribution)

I said last week that this decision would come back to haunt the Chancellor, and it has, but litt...

Lord Hammond of Runnymede | 623 c423 (Link to this contribution)

On the last point, we will, of course, consult people widely over the course of the summer as we ...

Anne-Marie Trevelyan | 623 c423 (Link to this contribution)

I thank the Chancellor for listening to the voices of colleagues and deciding to reverse the prop...

Lord Hammond of Runnymede | 623 c424 (Link to this contribution)

Yes, I can assure my hon. Friend that this Government will always be on the side of those who gen...

John Bercow | 623 c424 (Link to this contribution)

Order. I remind the House that colleagues who arrived in the Chamber after the start of the state...

Chris Leslie | 623 c424 (Link to this contribution)

This is obviously an acutely embarrassing episode for the Chancellor, but will he not acknowledge...

Lord Hammond of Runnymede | 623 c424 (Link to this contribution)

I find it a bit extraordinary that that should be the hon. Gentleman’s intervention. He, after al...

Baroness Morgan of Cotes | 623 c424 (Link to this contribution)

I commend my right hon. Friend for his statement today and for recognising what colleagues and ot...

Lord Hammond of Runnymede | 623 c425 (Link to this contribution)

I am grateful to my right hon. Friend. We have, absolutely, recognised the view of colleagues on ...

Angela Eagle | 623 c425 (Link to this contribution)

Of 28 measures in this Budget, the Chancellor has had to come in a humiliating fashion to the Hou...

Lord Hammond of Runnymede | 623 c425 (Link to this contribution)

I have to say that that was an extraordinary contribution, because the hon. Lady cannot have it b...

Oliver Letwin | 623 c425 (Link to this contribution)

I am sure my right hon. Friend is right to deal with this issue in the round, but I hope he will ...

Lord Hammond of Runnymede | 623 c425 (Link to this contribution)

The straight answer to my right hon. Friend is that only in the la la land that the Labour party ...

John McDonnell | 623 c425 (Link to this contribution)

Oh, dear me. You just, in a week, reversed a decision—

Lord Hammond of Runnymede | 623 c426 (Link to this contribution)

The right hon. Gentleman says, “Dear me”. I repeat: he does not—[Interruption.]

John Bercow | 623 c426 (Link to this contribution)

Order. We cannot have these shouting matches across the Chamber. [Interruption.] It is not for me...

Lord Hammond of Runnymede | 623 c426 (Link to this contribution)

Thank you, Mr Speaker.

The right hon. Gentleman does not believe in fiscal neutrality—that ...

Lord Field of Birkenhead | 623 c426 (Link to this contribution)

To make up the loss in revenue, might the Chancellor consider bearing down on those employers who...

Lord Hammond of Runnymede | 623 c426 (Link to this contribution)

The right hon. Gentleman is right. As I have said, there is, as the economy changes shape, an inc...

Jake Berry | 623 c426 (Link to this contribution)

I declare my interest as a self-employed solicitor. I commend the Chancellor on coming to the Hou...

Lord Hammond of Runnymede | 623 c426 (Link to this contribution)

My hon. Friend is absolutely right: it is about the environment being conducive to people startin...

Rachel Reeves | 623 c426 (Link to this contribution)

Will the Chancellor confirm when the decision to make this U-turn was made? Is not the truth that...

Lord Hammond of Runnymede | 623 c426 (Link to this contribution)

Clearly, that is the story the hon. Lady would like to believe, but, unfortunately, it is not tru...

Anne Main | 623 c427 (Link to this contribution)

There are 7,000 self-employed individuals in St Albans, representing 16% of the economically acti...

Lord Hammond of Runnymede | 623 c427 (Link to this contribution)

I am grateful to my hon. Friend. I have to say that I generally find it much more fruitful listen...

Alex Salmond | 623 c427 (Link to this contribution)

We all noted that the Chancellor brought along the First Lord of the Treasury today for support, ...

Lord Hammond of Runnymede | 623 c427 (Link to this contribution)

I have made a statement today about the Government’s intentions: no national insurance contributi...

Matthew Offord | 623 c427 (Link to this contribution)

I commend the Chancellor for coming to the House today. He is entirely correct to assert that the...

Lord Hammond of Runnymede | 623 c427 (Link to this contribution)

My hon. Friend is right. I did not mention this because it is not something that I particularly w...

Helen Goodman | 623 c428 (Link to this contribution)

I know that the Chancellor of the Exchequer will want an endorsement from me like a hole in the h...

Lord Hammond of Runnymede | 623 c428 (Link to this contribution)

I am grateful to the hon. Lady for her comments. It is important to separate the two issues invol...

Jacob Rees-Mogg | 623 c428 (Link to this contribution)

May I thank my right hon. Friend for his wisdom in being open to changing his mind, which shows t...

Lord Hammond of Runnymede | 623 c428 (Link to this contribution)

I am grateful to my hon. Friend, but what I see on the Opposition Benches these days is very ofte...

Greg Mulholland | 623 c428 (Link to this contribution)

This Budget was disappointing and unambitious, and is now mired in this chaos. Is it not now time...

Lord Hammond of Runnymede | 623 c428 (Link to this contribution)

What we need to fund our NHS is a strong economy and a Government who have the political will to ...

Anna Soubry | 623 c428 (Link to this contribution)

I commend the Chancellor for his statement. As somebody who was self-employed for many years, I k...

Lord Hammond of Runnymede | 623 c429 (Link to this contribution)

Angela Knight is the chairman of the Office of Tax Simplification, and we will of course seek its...

Yvette Cooper | 623 c429 (Link to this contribution)

May I just confirm the slightly astonishing thing that the Chancellor said a few moments ago—that...

Lord Hammond of Runnymede | 623 c429 (Link to this contribution)

I did say that, but let me be clear: I think that Laura Kuenssberg was the first person after I s...

Neil Carmichael | 623 c429 (Link to this contribution)

I certainly welcome this statement because it underlines very strongly the case for fairness and ...

Lord Hammond of Runnymede | 623 c429 (Link to this contribution)

As I said in the Budget speech and previously in the autumn statement, we are seeking to do three...

Wes Streeting | 623 c429 (Link to this contribution)

More than 10,000 people in Ilford North will welcome the Chancellor’s damascene conversion to the...

Lord Hammond of Runnymede | 623 c430 (Link to this contribution)

I have set out our long-term plan. The hon. Gentleman knows the fiscal figures, because they were...

Steve Double | 623 c430 (Link to this contribution)

On behalf of the 9,000 self-employed people in St Austell and Newquay, may I thank the Chancellor...

Lord Hammond of Runnymede | 623 c430 (Link to this contribution)

Yes. I can say to the self-employed of St Austell and, indeed, more widely across the UK that thi...

Sammy Wilson | 623 c430 (Link to this contribution)

The 130,000 self-employed people in Northern Ireland, who make up a seventh of the workforce, wil...

Lord Hammond of Runnymede | 623 c430 (Link to this contribution)

As the hon. Gentleman will know, this Government have introduced a raft of measures over the year...

Michelle Donelan | 623 c431 (Link to this contribution)

On behalf of all the hard-working self-employed people in Wiltshire, I thank the Chancellor for h...

Lord Hammond of Runnymede | 623 c431 (Link to this contribution)

Yes. As we have now cast more widely our review of the differences in how employees and the self-...

Lord Walney | 623 c431 (Link to this contribution)

Can we just be clear: is the Chancellor saying that he was not aware that he was breaking his own...

Lord Hammond of Runnymede | 623 c431 (Link to this contribution)

Neither. We understand the commitment that we made to have been discharged by the passage through...

Bob Blackman | 623 c431 (Link to this contribution)

I congratulate my right hon. Friend on listening to the self-employed and to representations from...

Lord Hammond of Runnymede | 623 c431 (Link to this contribution)

Yes. It will not be over the next two years, but in one go, with a tax cut of about £130 a year i...

Tasmina Ahmed-Sheikh | 623 c431 (Link to this contribution)

This is of course a welcome U-turn, but if it is right to rethink this decision, is it not also r...

Lord Hammond of Runnymede | 623 c432 (Link to this contribution)

We have already addressed the concerns of women affected by the change in pension age. Of course ...

Peter Bone | 623 c432 (Link to this contribution)

I very much welcome the Chancellor’s statement. In Wellingborough, we had a parliamentary meeting...

Lord Hammond of Runnymede | 623 c432 (Link to this contribution)

My hon. Friend never misses an opportunity to bring us back to his agenda. I have had suggestions...

Christian Matheson | 623 c432 (Link to this contribution)

The clear impression given by today’s announcement is of a reactive Government who are not in con...

Lord Hammond of Runnymede | 623 c432 (Link to this contribution)

Because those representations were not made before the statement. In fact, as the hon. Gentleman ...

Amanda Solloway | 623 c432 (Link to this contribution)

I want to add my congratulations to the Chancellor on his announcement. Self-employment is key to...

Lord Hammond of Runnymede | 623 c432 (Link to this contribution)

Yes. It is precisely growing small businesses that we must seek to encourage. The subset of the s...

Owen Smith | 623 c433 (Link to this contribution)

May I commend the Chancellor for the bravery of his statement? I ask him to pass on our sincere t...

Lord Hammond of Runnymede | 623 c433 (Link to this contribution)

I have explained to the House what happened and what the view is inside Government about the tax ...

Nigel Mills | 623 c433 (Link to this contribution)

I thank the Chancellor for his change of mind today. I urge him to carry on with some parts of th...

Lord Hammond of Runnymede | 623 c433 (Link to this contribution)

My hon. Friend is right. It is a relatively small group, but about 90,000 self-employed people, m...

Andy Slaughter | 623 c433 (Link to this contribution)

Unlike some of my hon. Friends, I can readily understand why the Chancellor resisted reading the ...

Lord Hammond of Runnymede | 623 c433 (Link to this contribution)

I think I have made my position quite clear. I have distinguished between the two issues. On the ...

Robert Jenrick | 623 c433 (Link to this contribution)

My constituents, almost a quarter of whom are self-employed, will welcome the decision today, but...

Lord Hammond of Runnymede | 623 c433 (Link to this contribution)

I empathise enormously with the self-employed of my hon. Friend’s constituency. He will know that...

Chris Evans | 623 c434 (Link to this contribution)

Will the Chancellor give small businesspeople an assurance that the three years he talks about is...

Lord Hammond of Runnymede | 623 c434 (Link to this contribution)

I have made it clear that there will be no increase in national insurance contributions during th...

Robert Courts | 623 c434 (Link to this contribution)

I declare an interest as someone who was self-employed until a few months ago. [Hon. Members: “He...

Lord Hammond of Runnymede | 623 c434 (Link to this contribution)

Yes. First we will respond to Matthew Taylor’s report, which looks more widely at employment righ...

Lord Hanson of Flint | 623 c434 (Link to this contribution)

Just so that I do not have to wait 30 years to read the minutes of the Cabinet meeting, will the ...

Lord Hammond of Runnymede | 623 c434 (Link to this contribution)

I am sorry to disappoint the right hon. Gentleman, but he will have to wait 30 years. I am not ab...

Richard Drax | 623 c434 (Link to this contribution)

I congratulate my right hon. Friend on his wise and dignified statement today, and thank him for ...

Lord Hammond of Runnymede | 623 c435 (Link to this contribution)

There again, we have a manifesto commitment to spend 0.7% of GDP on overseas aid. That commitment...

Roger Mullin | 623 c435 (Link to this contribution)

This is another right boorach. The last Chancellor who had to make a U-turn lasted only a few wee...

John Bercow | 623 c435 (Link to this contribution)

I am very grateful to the hon. Gentleman; I shall add the word “boorach” to my vocabulary.

Lord Hammond of Runnymede | 623 c435 (Link to this contribution)

Yes, the decision was made by myself and the Prime Minister this morning.

Michael Fabricant | 623 c435 (Link to this contribution)

I thank my right hon. Friend for reacting so quickly to the representations made to him by collea...

Lord Hammond of Runnymede | 623 c435 (Link to this contribution)

As you would expect, Mr Speaker, we try, if it is at all possible, to ensure that the House is al...

Danny Kinahan | 623 c435 (Link to this contribution)

We have already heard that Northern Ireland has some 134,000 self-employed people. We also know t...

Lord Hammond of Runnymede | 623 c435 (Link to this contribution)

Yes; as the hon. Gentleman alluded to, there are specific issues in Northern Ireland, where the p...

Ben Howlett | 623 c435 (Link to this contribution)

Although it might not be palatable to Opposition Members, as somebody who was self-employed for m...

Lord Hammond of Runnymede | 623 c436 (Link to this contribution)

As my hon. Friend will probably know, ideas about merging the tax and national insurance systems ...

Mike Gapes | 623 c436 (Link to this contribution)

Last week, the Chancellor made what at the time was a very funny joke about a Chancellor of the E...

Lord Hammond of Runnymede | 623 c436 (Link to this contribution)

I set out the basis on which we made the difficult decision to proceed with changes to class 4 na...

Andrew Murrison | 623 c436 (Link to this contribution)

I congratulate my right hon. Friend on his statement, and warmly thank him for listening to colle...

Lord Hammond of Runnymede | 623 c436 (Link to this contribution)

There is a soft hypothecation around national insurance contributions: 20% of the fund goes to th...

Paula Sherriff | 623 c436 (Link to this contribution)

Well, well. They do say a week is a long time in politics and I am sure the Chancellor would agre...

Lord Hammond of Runnymede | 623 c436 (Link to this contribution)

The hon. Lady might also have remarked that £2 billion was the amount we put into social care fun...

Lord Hammond of Runnymede | 623 c437 (Link to this contribution)

I am listening carefully to the right hon. Gentleman, but I am not hearing anything worth listeni...

David Morris | 623 c437 (Link to this contribution)

I was self-employed for 27 years before I came into this House, and I have campaigned long and ha...

Lord Hammond of Runnymede | 623 c437 (Link to this contribution)

The self-employed benefit from increased personal allowances, taking 3 million people out of tax ...

Margaret Ferrier | 623 c437 (Link to this contribution)

The Evening Standard delivered a damning verdict on its front page today, “Hammond U-turn on Budg...

Lord Hammond of Runnymede | 623 c437 (Link to this contribution)

I explained how we approached this issue. We have a bigger job to do here. The country is embarki...

Andrew Bingham | 623 c437 (Link to this contribution)

I applaud my right hon. Friend on three counts: his ability to understand, listen and act. He und...

Lord Hammond of Runnymede | 623 c437 (Link to this contribution)

As I have said many times today and am very happy to say again, we will always support those who ...

Geraint Davies | 623 c438 (Link to this contribution)

I realise that the Budget has now become a consultation exercise. Will the Chancellor confirm tha...

Lord Hammond of Runnymede | 623 c438 (Link to this contribution)

It is certainly the case that at the time of the last general election the referendum had not tak...

Huw Merriman | 623 c438 (Link to this contribution)

There has been much talk about the manifesto. This is the manifesto that promised to protect the ...

Lord Hammond of Runnymede | 623 c438 (Link to this contribution)

My hon. Friend is exactly right. As I have already said several times today, we will not adopt th...

Alan Brown | 623 c438 (Link to this contribution)

This farce has come about partly because of the lack of transparency in the estimates and Budget ...

Lord Hammond of Runnymede | 623 c438 (Link to this contribution)

We know that the Scottish National party believes in higher taxes, because everyone earning more ...

Charlie Elphicke | 623 c438 (Link to this contribution)

I commend the Chancellor for his statement and urge him to take firm action on fake self-employme...

Lord Hammond of Runnymede | 623 c439 (Link to this contribution)

That is the purpose of the report that Matthew Taylor is writing to look at the differences in tr...

Mark Durkan | 623 c439 (Link to this contribution)

The Chancellor now accepts that the shape, pace and burden of the change that he announced were g...

Lord Hammond of Runnymede | 623 c439 (Link to this contribution)

As I have said, we have considered the issue of women affected by the pension age changes and we ...

Philip Hollobone | 623 c439 (Link to this contribution)

Away from the Chamber of the House of Commons, out there in the real world, there is an army of s...

Lord Hammond of Runnymede | 623 c439 (Link to this contribution)

I am grateful to my hon. Friend, and I extend my sincere good wishes to all the people of Ketteri...

Tracy Brabin | 623 c439 (Link to this contribution)

Although the freelance cultural industries and the self-employed of Batley and Spen are very grat...

Lord Hammond of Runnymede | 623 c440 (Link to this contribution)

I hear what the hon. Lady says, but this is a measure that will affect only people who have a sha...

Jeremy Lefroy | 623 c440 (Link to this contribution)

I welcome the Chancellor’s statement and the fact that he is the first Chancellor to see the budg...

Lord Hammond of Runnymede | 623 c440 (Link to this contribution)

Yes, although I remind my hon. Friend that we have embarked on an efficiency review, seeking to m...

James Cartlidge | 623 c440 (Link to this contribution)

Auto-enrolment has been a great success story for the employed, but there is a major practical ba...

Lord Hammond of Runnymede | 623 c440 (Link to this contribution)

As I have said, we will include looking at auto-enrolment in the broader review that we are going...

Desmond Swayne | 623 c440 (Link to this contribution)

On a point of order, Mr Speaker. May I make a germane point of order?

John Bercow | 623 c440 (Link to this contribution)

It is quite a proud and ambitious boast of the right hon. Gentleman that his point of order will ...

Alex Salmond | 623 c441 (Link to this contribution)

On a point of order, Mr Speaker. I, too, have an extremely germane point of order.

John Bercow | 623 c441 (Link to this contribution)

Extremely germane? Well, there is a Dutch auction in relevance taking place here.

John Bercow | 623 c441 (Link to this contribution)

I am going to take the hon. Member for Salford and Eccles (Rebecca Long Bailey), who is speaking ...

Rebecca Long Bailey | 623 c441 (Link to this contribution)

In response to questions, the Chancellor stated that I had confirmed, with reference to the Natio...

John Bercow | 623 c441 (Link to this contribution)

Order. I am sorry, but I cannot have a lengthy dilation. That is not appropriate. If the hon. Lad...

Rebecca Long Bailey | 623 c441 (Link to this contribution)

I respectfully request that the Chancellor retracts the comments he made earlier on that very que...

John Bercow | 623 c441 (Link to this contribution)

The hon. Lady has made her request. The Chancellor can respond, but he is not procedurally oblige...

Lord Hammond of Runnymede | 623 c441 (Link to this contribution)

Further to that point of order, Let me merely and briefly read the hon. Lady’s words as recorded ...

John Bercow | 623 c441 (Link to this contribution)

I cannot instruct Members on which sentence they should read, but I rather suspect that if Member...

John Bercow | 623 c442 (Link to this contribution)

Two Members are standing, both of whom are distinguished products of the University of St Andrews...

Alex Salmond | 623 c442 (Link to this contribution)

On a point of order, A wise choice, Sir. My point of order, extremely germanely, is about collect...

John Bercow | 623 c442 (Link to this contribution)

Far be it from me to have to say this to the right hon. Gentleman, but I think that he has raised...

John Bercow | 623 c442 (Link to this contribution)

I do not wish to adjudicate upon how relevant it is—

John Bercow | 623 c442 (Link to this contribution)

But it has been heard, and I do not wish further time to be taken up by a Division of the House. ...

Desmond Swayne | 623 c442 (Link to this contribution)

On a point of order, Mr Speaker. As a slavish supporter of the Government, I am in some difficult...

John Bercow | 623 cc442-3 (Link to this contribution)

I hope that the right hon. Gentleman is satisfied that, by a wanton abuse of the point of order p...

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