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| National insurance delay appeases Conservative rebels | National insurance delay appeases Conservative rebels |
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| Theresa May’s decision to delay a controversial national insurance rise for self-employed workers appears to have partially quelled a rebellion by Conservative MPs, although Labour said ministers were “in disarray” over the issue. | Theresa May’s decision to delay a controversial national insurance rise for self-employed workers appears to have partially quelled a rebellion by Conservative MPs, although Labour said ministers were “in disarray” over the issue. |
| With the number of MPs opposing the scheme climbing above the government’s working majority, and pressure growing on the chancellor, May said nothing would be decided until the autumn. | With the number of MPs opposing the scheme climbing above the government’s working majority, and pressure growing on the chancellor, May said nothing would be decided until the autumn. |
| Some Tory rebels had worried the proposal, the centrepiece of Philip Hammond’s first budget on Wednesday, could be introduced as part of the current finance bill even though it does not come into force until April 2018. | Some Tory rebels had worried the proposal, the centrepiece of Philip Hammond’s first budget on Wednesday, could be introduced as part of the current finance bill even though it does not come into force until April 2018. |
| But the prime minister said on Thursday evening that the changes would be legislated on in the autumn, when Hammond presented the second budget of the year. | But the prime minister said on Thursday evening that the changes would be legislated on in the autumn, when Hammond presented the second budget of the year. |
| “It won’t be part of the finance bill,” May told reporters at a European summit in Brussels. “That is always what happens with national insurance changes. Those elements will be brought forward in the autumn.” | “It won’t be part of the finance bill,” May told reporters at a European summit in Brussels. “That is always what happens with national insurance changes. Those elements will be brought forward in the autumn.” |
| The delay will allow the government to publish a paper making the case for the changes; and will come after the publication of Matthew Taylor’s report on the changing nature of the labour market, which will consider the gig economy and self-employment. | The delay will allow the government to publish a paper making the case for the changes; and will come after the publication of Matthew Taylor’s report on the changing nature of the labour market, which will consider the gig economy and self-employment. |
| Taylor, a former adviser to the Labour government, is expected to recommend enhancing employment rights and social benefits for the self-employed. | Taylor, a former adviser to the Labour government, is expected to recommend enhancing employment rights and social benefits for the self-employed. |
| May defended the policy, saying it would make the tax system “simpler, fairer and more progressive”, and insisting it did not breach the Conservative manifesto pledge not to raise national insurance. | May defended the policy, saying it would make the tax system “simpler, fairer and more progressive”, and insisting it did not breach the Conservative manifesto pledge not to raise national insurance. |
| “People will be able to look at the government paper when we produce it showing all our changes and take a judgement in the round. Of course, the chancellor and his ministers will be speaking to MPs, businesspeople and others to listen to their concerns.” | “People will be able to look at the government paper when we produce it showing all our changes and take a judgement in the round. Of course, the chancellor and his ministers will be speaking to MPs, businesspeople and others to listen to their concerns.” |
| But she insisted: “This is a change that leaves lower paid self-employed workers better off.” | But she insisted: “This is a change that leaves lower paid self-employed workers better off.” |
| The partial climbdown was welcomed by some of the rebels. Ann-Marie Trevelyan, the Tory MP for Berwick-upon-Tweed, said the comments were reassuring. “It will provide a rounded perspective and everyone will have the chance to consider the impacts.” | The partial climbdown was welcomed by some of the rebels. Ann-Marie Trevelyan, the Tory MP for Berwick-upon-Tweed, said the comments were reassuring. “It will provide a rounded perspective and everyone will have the chance to consider the impacts.” |
| Tom Tugendhat, the MP for Tonbridge and Malling, who had asked Hammond to rethink the idea, told BBC Radio 4’s Today programme he believed May was right to wait for and consider the Taylor report.“The policy has got to reflect the individual risk that entrepreneurs and self-employed people bear … The policy has got to reflect the reality of modern employment.” | |
| It remains to be seen, however, whether some rebels might still object to the planned changes, which will take national insurance contributions for the self-employed to 10% in 2018, and 11% in 2019. | It remains to be seen, however, whether some rebels might still object to the planned changes, which will take national insurance contributions for the self-employed to 10% in 2018, and 11% in 2019. |
| Guto Bebb, the junior Wales Office minister who is also a whip, told BBC Radio Cymru: “I believe we should apologise. I will apologise to every voter in Wales that read the Conservative manifesto in the 2015 election.” | Guto Bebb, the junior Wales Office minister who is also a whip, told BBC Radio Cymru: “I believe we should apologise. I will apologise to every voter in Wales that read the Conservative manifesto in the 2015 election.” |
| A Guardian tally of Conservative MPs known to have publicly or privately expressed opposition to the proposal before May’s announcement found 18 could potentially oppose it. The government has a working majority of 17. | A Guardian tally of Conservative MPs known to have publicly or privately expressed opposition to the proposal before May’s announcement found 18 could potentially oppose it. The government has a working majority of 17. |
| Those expressing private disquiet were understood to include a cabinet minister. | Those expressing private disquiet were understood to include a cabinet minister. |
| The shadow chancellor, John McDonnell, said May’s comments showed she and Hammond were at odds over the issue. | The shadow chancellor, John McDonnell, said May’s comments showed she and Hammond were at odds over the issue. |
| “The fact the prime minister won’t fully support her own chancellor’s budget measure, and has been forced by Labour to row back on it just 24 hours after he delivered his speech in parliament, shows the level of disarray that exists at the top of government.” | “The fact the prime minister won’t fully support her own chancellor’s budget measure, and has been forced by Labour to row back on it just 24 hours after he delivered his speech in parliament, shows the level of disarray that exists at the top of government.” |
| The Liberal Democrat leader, Tim Farron, said: “Kicking the can down the road for a few weeks shows that the Conservatives are still planning to hit hard-working self-employed people.” | The Liberal Democrat leader, Tim Farron, said: “Kicking the can down the road for a few weeks shows that the Conservatives are still planning to hit hard-working self-employed people.” |
| May’s spokesman said the prime minister had complete confidence in Hammond. | May’s spokesman said the prime minister had complete confidence in Hammond. |