Downing Street has insisted Theresa May remains fully committed to reforming National Insurance for the self-employed – despite offering an apparent concession in the face of a backbench revolt.
The prime minister and chancellor found themselves in hot water over the plan, announced in the Budget, which will hit almost 2.5 million self-employed people with a £240 rise.
It dominated an otherwise low-key speech and Philip Hammond was immediately accused of breaking an election pledge amid Tory fears the policy would affect traditional supporters.
Mrs May has since promised to listen to concerns raised by Conservative MPs and said there would be no vote until the autumn.
In the meantime, a review of modern employment practices is due to report in the summer.
This will be followed by a government paper which is expected to include proposals to extend benefits such as parental leave to the self-employed.
Labour said the “rowing back” showed the Tories were in “disarray”, but a new poll gave them a 19 point lead over Jeremy Corbyn’s party.
Several senior Tories spoke out against the measure, including Wales minister Guto Bebb who said the government should apologise for going back on a manifesto commitment not to increase National Insurance.
Meanwhile, David Cameron was spotted at Thursday’s war memorial unveiling apparently criticising the idea.
But Mrs May has insisted Mr Hammond’s planned 2% increase in Class 4 National Insurance contributions for the self-employed is “fair”, when considered in the light of the abolition of the separate Class 2 payments as well as improvements to the benefits received by self-employed people.
Pressed on whether the forthcoming paper would likely include concessions to critics, the prime minister’s spokesman said: “What you are going to get … is a paper over the summer which spells out the changes to Class 2, the changes to Class 4 and looks at potentially what new rights could be given to people who are self-employed.”
Shadow chancellor John McDonnell said: “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.”
