Unpopular plans to raise national insurance scrapped by Chancellor Philip Hammond

Chancellor Philip Hammond on a visit to Portsmouth
Chancellor Philip Hammond on a visit to Portsmouth
HMS Queen Elizabeth arrives in Portsmouth            Picture: PA

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Chancellor Philip Hammond has scrapped plans to increase national insurance contribution for the self-employed.

The move was announced in last week’s budget but it attracted criticism as there were concerns it would harm entrepreneurs.

Mr Hammond said in a letter to Conservative MPs that he had decided to drop the changes ‘in the light of the debate of the last few days.’

He is due to give a statement to MPs today confirming the changes, which were due to come in April next year, will not be brought in.