The announcement that plans to increase National Insurance Contributions (NICs) for self-employed people have been dropped, is welcome news for the farming community, according to the Farmers’ Union of Wales.
The increase as proposed in the Chancellor’s Spring Budget, would have hit the low and middle earning self-employed and as the majority of Welsh family farms are classed as such, the measure would have done little to support rural businesses.
Today, Chancellor Philip Hammond has said the government will not proceed with the increases which were criticised for breaking a 2015 manifesto pledge.
In a letter to Tory MPs, he said: “There will be no increases in… rates in this Parliament.”
Responding to the news, FUW President Glyn Roberts said: “Common sense has prevailed and we welcome the U-turn on the proposed increase in NICs.
“This increase would have hit farmers across the UK badly, and that at a time when they are already having to cope with an increase in business rates, which of course is devolved to Wales. Add to that the uncertainty around future agricultural support and those making a living from agriculture are not being put in the most favourable financial conditions. We therefore thank the Chancellor for revoking this nonsensical increase.”