Analyst says budget criticism is overblown as only 50% of self-employed people will be affected

Budget 2017: 'Low self-employed earners will be unaffected by National Insurance hike', says analyst

A policy analyst has explained how the planned NI hike won't affect every self-employed individual

Thursday, March 9, 2017

A policy analyst at a leading thinktank has said the controversy surrounding Phillip Hammond's budget is a bit overblown because the research shows half of self-employed workers won't be affected.

Stephen Clarke spoke to Julia Hartley-Brewer about the 2% hike on national insurance contributions for the self-employed announced by Mr Hammond yesterday. 

This has caused fierce controversy, with the tabloids accusing the Chancellor of hurting the self-employed people of Britain while Labour claim he has broken promises to freeze tax and national insurance in the Tories' 2015 manifesto. 

Clarke works, who works as a policy analyst for the Resolution Foundation, told Julia: "I think perhaps some of the headlines were over the top.

"Yes, there will be some self-employed people who will lose out, but our research shows half of all self-employed workers won’t lose out.

"It’ll be mainly the higher paid workers who do, and so it [National Insurance hike] should be seen in the round.

"The changes brought in yesterday will not affect low-earners."