Class 4 National Insurance Contributions

Neil Carmichael Excerpts

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

I did say that, but let me be clear: I think that Laura Kuenssberg was the first person after I spoke to raise the issue outside. The Government have always been clear, as I said on Wednesday evening and on Thursday, many times, and the Prime Minister said on Thursday evening, that we have always regarded the legislated tax locks as being the commitment we were working to. Our whole approach in the Treasury—all the work we do—is based around the tax locks that are in place. I accept, however, that there is a gap between the specific tax locks that were legislated and the wording that was used in the manifesto. We have today accepted that the more expansive interpretation should be the one that prevails, and that is why I have made the statement that I have.

[Neil Carmichael (Stroud) (Con)]

I certainly welcome this statement because it underlines very strongly the case for fairness and also salutes the important work that self-employed people do. Does the Chancellor of the Exchequer agree that if we enter a period of turbulence for whatever reason, it is fundamentally necessary to have a strong fiscal basis, and that is what he is achieving through acting in this way?

[Mr Hammond]

As I said in the Budget speech and previously in the autumn statement, we are seeking to do three things: to keep Britain on track for balancing the budget as early as possible in the next Parliament through fiscal discipline; to invest in Britain’s future to raise our productivity and ensure a decent standard of living for everybody across this country, on which we made further steps in this Budget by investing in skills; and to ensure that we have enough fiscal headroom in our fiscal position to allow for any events that arise over the coming years. We need the ability to manoeuvre as we go through what will be a period of unusual uncertainty in the planning of our economy.