Philip hammond

Sunday

Fraser Nelson

It’s Hammond vs May, as the Budget blame game intensifies

Throughout David Cameron and George Osborne’s six-year double act, we seldom heard of serious arguments between them. Both were keen to avoid a repeat of the Blair-Brown psychodrama and prided themselves on their indivisibility. Same with their respective teams. You would never pick up the Sunday papers and read the sort of No. 10 vs No. 11 insults that we see this morning. The Sunday Telegraph splashes on ‘Cabinet war over Budget shambles’ and describes how even the Cabinet were not told that Philip Hammond was about to break their manifesto commitment not to raise National Insurance. Most of the Cabinet is hopping mad: one member last week told me that Hammond’s breaking

Martin Vander Weyer Martin Vander Weyer

How Philip Hammond’s National Insurance hike affects the ‘gig economy’

You might argue that the self-employed enjoy less security than the employed, so it’s fair they contribute less; you might argue that the ‘sharing economy’ is a nifty pocket-money source for hard-pressed families, and that tax grabs will swiftly kill it. But revenue-starved Chancellor Hammond will retort that all income and commerce, however novel in form, must be taxed unless specifically exempted, otherwise government can’t make ends meet: tax should keep pace with changing patterns of life and technology. Thus Microsoft founder Bill Gates recently proposed that if robots are replacing humans in business, then companies operating robots should pay income tax on their behalf. Back in 1991, Chancellor Norman

Saturday

Ross Clark

The self-employed shouldn’t pay more tax. Here’s why

Last Wednesday, Philip Hammond made a joke at Norman Lamont’s expense by reminding the world of how John Major’s first chancellor was sacked after a negative public reaction to his budget in 1993. Hammond, one suspects, is already beginning to regret his gag as Lamont today became the latest Conservative to damn his plans to raise National Insurance contributions on the self-employed. What has been so damaging is not so much the staged 2 per cent rise in contributions as the strong hint that he is considering going far further and equalising, as he sees it, the NI contributions of employed and the self-employed in the name of ‘fairness’. Employees

James Forsyth James Forsyth

The Tory Budget rebellion is growing

The Tory rebellion over the tax hike on the self-employed isn’t abating, it is intensifying as I say in The Sun this morning. As one Cabinet Minister tells me, Tory MPs ‘left the Budget feeling a little bit concerned. They’ve seen the papers, and thought this isn’t good. After the emails and constituency stuff, there’ll be even more nervous’. One Tory backbencher, who is a good judge of the mood of the parliamentary party, says ‘People are not happy at all. Somethings’ got to change’. But Philip Hammond is digging in. He is ‘absolutely determined not to retreat on this’ according to one Cabinet ally of his. He has, I’m

The Spectator

Philip Hammond’s budget disaster

Some Budgets are historic, most are boring and a small number can be remembered as a disaster. After just a few months, Philip Hammond has managed a budget – his first – that can be placed in this last category. Economically, it made very little difference. Politically, it is shaping up to be a disaster. His Budget was supposed to have been conducted under the pledge, issued no fewer than four times in the 2015 Conservative manifesto, that his party not raise taxes. ‘Instead, we will ease the burden of taxation,’ the Tories promised. It seems plausible enough, and the Conservatives were returned with an absolute majority. Whatever else one might have thought about David Cameron, he had shown

Friday

Ross Clark

Why are New Labour wonks directing Tory policy?

Theresa May’s announcement that the vote on raising National Insurance contributions for the self-employed will be delayed until after the publication of the Taylor Report in Modern Employment Practises in the autumn is presumably meant to reassure us that the government is taking seriously the many objections which have been levied against the policy in the 48 hours since it was announced by the Chancellor. On the other hand it might merely concentrate minds on a question which few have yet asked: just why does Theresa May have Tony Blair’s former chief policy wonk seeming to direct Conservative policy on employment? The Taylor review, set up by the Prime Minister

Fraser Nelson Fraser Nelson

Tories, tax and trust – a warning from history

I was on the Question Time panel last night, and suspected that the issue of National Insurance might crop up – and that Karen Bradley, the Culture Secretary, would be sent out to defend the indefensible. Like all ministers, she has to repeat Philip Hammond’s bizarre claim that the Tories had not broken a manifesto pledge. That when they repeatedly promised not to raise National Insurance they meant only part of the National Insurance. The 2015 Tory manifesto contained no such caveat (I brought a copy along to the studio) and it’s impossible for any minister to claim otherwise. Hammond has already been accused of ‘lying’ – a strong word,

Tom Goodenough Tom Goodenough

The newspapers dump on Hammond’s National Insurance hike – again

Theresa May and Philip Hammond were in a laughing mood in the Commons on Wednesday. After a second day of dreadful headlines in the newspapers, they certainly won’t be now. The Government’s honeymoon period in the media is over – and the Chancellor’s National Insurance hike for the self-employed is entirely to blame. So far, the Prime Minister has stuck to her guns by insisting the policy will go through (even if the PM did kick it back to the Autumn). If she really is to go through with the controversial policy – and the number of Tory rebels is growing – she’ll have to resist a mounting barrage of

Thursday

The Spectator

Ambition deficit

Some Budgets are historic, most are boring and a small number can be remembered as a disaster. After just a few months, Philip Hammond has managed a budget – his first – that can be placed in this last category. Economically, it made very little difference. Politically, it is shaping up to be a disaster. His Budget was supposed to have been conducted under the pledge, issued no fewer than four times in the 2015 Conservative manifesto, that his party not raise taxes. ‘Instead, we will ease the burden of taxation,’ the Tories promised. It seems plausible enough, and the Conservatives were returned with an absolute majority. Whatever else one might have thought about David Cameron, he had shown

Paul Johnson

The IFS backs Philip Hammond in National Insurance row

Philip Hammond is under pressure over his National Insurance contributions hike. More than a dozen Tory MPs have so far criticised the plans and Downing Street has refused to rule out a rethink. But the Chancellor does still have some allies; the IFS has just thrown its weight behind the plans. Here’s what its director, Paul Johnson, had to say: ‘Spring Budgets seem to be going out with something of a whimper. Yesterday’s was one of the smallest I can remember in pretty much every dimension – number of policies, scale of policies and size of fiscal impact. I’m not complaining, mind. There will be another Budget in November and the whole

Katy Balls Katy Balls

The IFS throws Philip Hammond a lifeline – will he take it?

As Philip Hammond faces a slew of negative headlines and fields accusations that he is a liar over his decision to backtrack on a 2015 Tory manifesto pledge and raise National Insurance for the self-employed, the Chancellor has been thrown a lifeline by the Institute of Fiscal Studies. At today’s IFS Budget briefing, Paul Johnson offered his verdict on Hammond’s first Budget. While he raised concerns about the government’s sluggish plan to balance the books (warning that it could be delayed past 2025), he welcomed the controversial NIC raise as ‘baby steps in the right direction’: ‘A tax system which charges thousands of pounds more in tax for employees doing the same job

Laura Whitcombe

What the final Spring Budget means for your pocket

With the Chancellor’s Budget moving to a single event from later this year, yesterday’s final Spring Budget went out with a muffled pop rather than a bang. After announcing an improved forecast for economic growth throughout the rest of year and revealing that employment has reached a record high, the biggest personal finance changes set out will largely affect the self-employed and small businesses. Both groups will be hit by rises in National Insurance Contributions and business rates. Currently, the self-employed can have to pay both Class 4 and Class 2 NICs, which are charged at 9 per cent on profits between £8,060 and £43,000 and at a flat rate of £2.80

Steerpike Steerpike

Watch: Philip Hammond squirms as he is accused of being a liar over National Insurance U-turn

The Chancellor has awoken to a slew of bad headlines today following his decision to row back on a 2015 Tory manifesto pledge and raise National Insurance for the self-employed. In an attempt at some damage limitation, Philip Hammond has been doing the usual post-Budget media rounds this morning. Alas his interview with Sky News didn’t go quite to plan. Challenged repeatedly on the broken Tory manifesto pledge, an uncomfortable Hammond was accused of being a liar: Sky News: Were you lying when you stood on that vote, was the manifesto wrong — or have you just decided to renege on it? PH: The manifesto presented a package of measures and we

Tom Goodenough Tom Goodenough

Revealed: The full list of Tory MPs who have spoken out against the Chancellor

Given that Jeremy Corbyn barely seemed to notice Philip Hammond’s Budget blunder, it’s unlikely the Chancellor will be too worried about Labour’s response to the National Insurance rates row. He will be troubled, though, by the rumblings on the backbenches behind him. The prospect of a Tory revolt is now very much on the cards; 18 Conservative MPs – including former leader Iain Duncan Smith and Tory whip Guto Bebb – have publicly spoken out against the policy. Because Tory MPs were voted in on a manifesto pledge not to raise NI contributions – and will inevitably be getting it in the neck from angry constituents over the coming days –

Tom Goodenough Tom Goodenough

What the papers say: Philip Hammond’s broken promise

Philip Hammond is feeling the heat this morning. This was supposed to be the ‘boring’ budget, with no headline-grabbing announcements or spending splurges. Instead, the Chancellor’s face is splashed across the front pages this morning for all the wrong reasons. And the reception for Hammond doesn’t get any warmer inside the newspapers. The Daily Mail starts its commentary with some praise for the Chancellor. It says that his Budget ‘was a million miles from the panic-stricken emergency Budget’ put forward in the run-up to the referendum by his predecessor. Gone was the ‘anxiety’ about the future of Britain’s economy; and in came the jokes – gags the Chancellor could afford with

James Forsyth James Forsyth

A Budget to keep Brexit off the rocks

Chancellors often enjoy a Budget for the chance it gives them to show off. They enjoy wrong-footing their opponents with a dramatic and unexpected announcement right at the end of their speech — the much-anticipated rabbit pulled from the hat. But Philip Hammond is not a political showman. He must be the only Chancellor in living memory to have played down his first Budget, telling colleagues with big ideas to come back to him this autumn. This lack of showmanship should not be mistaken for an absence of serious intent. He is unique among recent chancellors for two reasons: he has no ambition to move one door along to No.

Wednesday

Lloyd Evans

Jeremy Corbyn’s torrent of miserabilism sums up the party’s woes

Would it take much to turn Philip Hammond into Dracula? He’s got the gaunt bearing, the unsettling gaze, the greedy overbite and the louring stature of the blood-sucking count. Add an opera cape and a dab of mascara and the costume would be complete. So it’s strange to see this vampiric figure delivering a budget full of happy tidings. Our economy is growing, he grinned, faster than America’s or Japan’s. Tax revenues are up. Employment has reached a new zenith. Joblessness has dwindled to 11-year lows. And he didn’t even mention London. A lot of the best data comes from the midlands and the north. He’ll probably never have an

Steerpike Steerpike

Is David Cameron to blame for Philip Hammond’s Budget blues?

This afternoon Philip Hammond has found himself the subject of much bad press over his decision to break a 2015 Tory manifesto pledge and raise national insurance for the self-employed. But is Hammond the person to blame? Mr S only asks as it turns out that those involved with the 2015 Conservative manifesto might not have put that much thought into the original pledge. Speaking to the Sun‘s Tom Newton Dunn last year, Ameet Gill — David Cameron’s former Head of Strategy — revealed that the promise to not raise National Insurance for five years was only implemented because they had a ‘hole in the grid’: ‘Towards the end of the

James Forsyth James Forsyth

Philip Hammond must act fast to avoid a repeat of the pasty tax row

The government is in trouble over the National Insurance increase for the self-employed. Journalists are busy pointing out that the Tory manifesto explicitly said that there would be no increases in National Insurance. But Philip Hammond’s allies are—rather absurdly—claiming that the Budget keeps this manifesto promise as the post-election tax lock law only refers to Class One National Insurance contributions, and what is being raised is Class 4 ones. This is the wrong ground for the government to fight on; and they’ll end up losing if they remain camped out here. It is rather ironic that a Budget which promises to clamp down on misleading special offers that take advantage

Ross Clark Ross Clark

Biggest loser from this Budget? The credibility of Tory tax promises

There is a very big winner from today’s budget. Not adults in social care, not schools, but Ukip. Philip Hammond has handed a huge political opportunity: to position itself as the party of the self-employed: the taxi driver, the brickie, the plumber, the small shop-owner. These used to be natural Tories. From today, with Hammond imposing a two per cent extra tax on their income, and breaking a manifesto commitment in the process, they will be looking for a new political home. No wonder Suzanne Evans was tweeting about the change within seconds of it being made. The Treasury’s argument for raising National Insurance Contributions on the self-employed is that