Change to National Insurance an attack on Isle of Wight self-employed say Labour

The Isle of Wight Labour Party say the claims of the Government that they are on the side of working people has been shown to be an outright lie.

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Stewart Blackmore, Vice Chair of the Isle of Wight Constituency Labour Party shares this latest news. Ed


Government changes to National Insurance contributions – which will leave 9,000 Isle of Wight self-employed people worse off – have been attacked by the Island’s Labour Party.

Labour said the move announced in this week’s budget was an attack on hard work and entrepreneurialism that would cause unfair hardship on a large proportion of the Island’s working population – including those who had left or lost their jobs as the result of government austerity cuts.

Attacking a significant group of people
Labour Party chair, Deborah Gardiner, said,

“Not only does this measure break a key Tory manifesto pledge it also attacks a significant group of people who have had the courage to set out on their own.

“The claims of the Tory Government that they are on the side of working people has been shown to be an outright lie. I find it astonishing that on a local level, Andrew Turner with his high salary and expensive property portfolio, seems oblivious to the harm this ill-judged policy shift will do to great many people and their families.”

Unwarranted and unnecessary step
Island Labour Vice-chair Stewart Blackmore added,

“Many self-employed people have set out on their own having been made redundant because of austerity measures. Choosing to attack these people and leaving the richest people to enjoy favourable tax breaks shows who the Tory Government is really working for.

“Self-employed people have no holiday or sickness entitlement and they also often work on very tight margins. This unwarranted and unnecessary step could be the difference between success and failure for thousands of traders on the Island.”

Image: Doug88888 under CC BY 2.0

Friday, 10th March, 2017 1:28pm

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Filed under: Business, Government, Island-wide, Isle of Wight News, Top story

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18 Comments on "Change to National Insurance an attack on Isle of Wight self-employed say Labour"

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tr
Oh for goodness sake…. NI does not pay for holiday pay, your employer does, and when you are self employed, guess what, you pay for it yourself. NI does pay for sick pay, but the self employed don’t get sick pay, BUT, the new NI rate is still lower than that paid by an employee. The big difference is Pension. In the past, the self employed never… Read more »
Steve Goodman

If it’s “FAIR” why did the Cons. promise four/ FOUR times not to do it in their election manifesto/ maniFESTO, for/ FOR goodness sake?

Caconym

Actually, your employer pays your sick pay.

They are, actually, only obliged to pay £88.45 a week, and, then, only after you have been sick for 4 days.

Most decent employers offer a sick pay scheme where they will pay your full wages for a certain period of time.

Employers have to pay SSP (statutory sick pay) themselves, and cannot claim it back from the Government.

tr

Actually, while your employer pays your sick pay, he IS able to claim a proportion of it (statutory sick pay, SSP) back from the government – hence my comment re the cost of SSP being paid for from within NI contributions.

Caconym

No. They can no longer claim it back. See the Government Web site for details.

Tim

Fair that the contributions rise to parity with those directly employed but unfair that only the pension entitlement rises.

What about sickness, unemployment and maternity benefits etc.? These appear to have to have been overlooked.

Equal contributions and equal access to benefits would indeed be fair but that is not what is being proposed.

tr

as I’ve just pointed out Tim, SSP is paid by the employer and reclaimable from the government on the monthly Tax/NI return

Maurice Briggs

tr As Suruk says. the employer is no longer able to reclaim SSP

tr

Thanks for the correction Maurice. Seems you’re never too old to learn.
I guess if the employer is paying the SSP, and not claiming back from HMRC via his monthly return, then it will impact on his profit and work itself out through his company tax..

tr

I take your point re unemployment and maternity benefits Tim, but as I said, the new NI for the self employed will still be lower than that paid by the employed.
maybe if the thinking is to achieve full parity, then these benefits will also be included…. gotta start somewhere and the pension element is a big step forward for the self employed.

Pigwig

The weird thing is that they’re doing this to their core torys voters. ..they’re not just shafting the white van man…it’s the book keeper. ..the accountant…the dog walker..the shop keeper. .

Ian Young
As an aside, there would seem to be a growing problem with regard to Companies who require a full time comment from individuals, but then maintain they are not actually employing them, thus avoiding the need to pay employer NIC, SSP and other benefits an employee would take for granted. I believe trendier people than me call it the “gig economy.” To their credit some Trade Unions… Read more »
Caconym

The “gig economy”, while suitable for some, is often used to exploit workers and pay them well below the national minimum wage by exploiting the gig worker’s self employed / agency status.

Care workers are very common victims. They often have to buy their own fuel, are not paid when travelling between clients and are paid a fixed amount per client, irrespective of how long the visit takes.

iain mckie
I feel sorry for Labour on this. They are very often lambasted for having been a tax and spend party during the Blair and Brown years. In 2008/9 the Govt taxed and spent £620 billion, whereas this year the Conservatives will be spending £805 billion (not including their dodgy £11 billion a year suspension of loan repayments). I have long believed that the Conservatives became another socialist… Read more »
Caconym

The Tories aren’t the party of business and innovation. They are the party of the Elites, backhanders and old-boys networks.

Unlike UKIP.

Oh, wait, isn’t Farage toadying away with that arch Elite Trump, for all he’s worth, and demanding a Lordship to boot.

But you left UKIP, didn’t you? Why was that again?

Mug4working
Workers crapped on yet again by Tory scum while crackheads and swillers live it up off their face all day on free 50k a year handouts and never questioned. Why should we struggle to survive and go out grafting to try and make ends meet while these wasters laze about all day and never pay in a penny to all the services they are getting for free.… Read more »
Kim

The Cons said the higher rate of taxation would only generate 150’million and wasn’t viable
The new NI will generate 145 million
Says it all really

pieinsky

Neil Kinnock in a recent letter to the Guardian suggested the Tory governments recent repeated references to ‘ordinary working families’ (Owfs), really shows what they think of the majority of their fellow citizens!

And lets face it we voted for and are lapping up Austerity 1 and Austerity 2 (BREXIT), and salving our consciences by blaming Labour!