Just like I reported about last week, the Chancellor Philip Hammond went after the self employed in his budget with a tax grab, and many were outraged!
So much so that it now looks like Mr Hammond has decided to do an amazing U-Turn on his initial plans, in a move that we have never seen before from a UK Chancellor.
In a brief letter that was sent to all Tory MPs (I reported how many back benchers were not impressed by the tax grab plans), the Chancellor said that he would no longer be making Class 4 National Insurance payments more expensive for the self employed.
The right thing has been done of course, but it does raise some questions that need answering.
Firstly, how on Earth did they think doing a tax grab was a good idea in the first place? Just like I said last week, it was another slap in the face for our nations self employed. It’s almost as if many people in the government don’t have a clue.
Secondly, does the Chancellor have no conviction at all in what he is doing? To do a U-Turn so soon after the Budget really has made a lot of people wonder if this guy is even up to the job. The UK could soon become a laughing stock…it probably already is.
I didn’t agree with his decision to do the tax grab (and that does make me question his qualifications for the job), but what really makes me wonder about the Chancellor is the fact he was so quick to give in.
Sure, it’s good that you are willing to listen to other people and take on board feedback, but sometimes you have to stand behind your decisions. I think this was one of those times for Philip Hammond.
Other world leaders will no doubt be looking at this and noting down that the UK are potential easy targets when it comes to the negotiation table.
I’m not saying that Philip Hammond should not have backed down and gone away from his initial plans…but I think he did it way too quickly, and like mentioned before, with no real conviction is what he was doing.
Anyway, it’s good to see that self employed people are not going to be subjected to this tax grab, but in my opinion it really doesn’t change anything.
Contractors, freelancers, gig workers, small business owners…they need to be rewarded for what they do for the economy, especially when you consider that Brexit is just around the corner where the UK will be leaving the European Union.
These are the men and women that the government want on their side, but what are they doing to achieve this? Not a lot if you ask me.