Angela Eagle says there is £14bn of tax revenue at risk this parliament because of the rise in self-employment. How will Mr Hammond plug this shortfall?

Mr Hammond says "she can't have her cake and eat it".

"She wants me to protect our manifesto pledges" and to address the taxation gap between the employed and the self employed, he says. 

"We will have to address that difference in due course... but we will deliver on the spirit and letter of our manifesto," he says.

The chief secretary to the Treasury, David Gauke is looking a little queasy...

Labour leader Jeremy Corbyn is accused of failing to capitalise on the Government's u-turn over national insurance.  

Tory MP Tim Loughton says Mr Corbyn should have channeled Brutus who helped assassinate Julius Caesar on the Ides of March - March 15 in the Roman calendar.  

He said: "Today is the Ides of March and yet again Brutus opposite missed badly."

While Labour MP Tom Blenkinsop tweeted: "May was poor, as usual, but she hasn't suffered her worst #PMQs serious questions about holding the Govt to account need to be asked." 

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Image source, HoC

It is shocking and humilitating that the chancellor come to the House to reverse a key Budget decision, the shadow chancellor John McDonnell says.

If the Chancellor had spent less time writing jokes for his Budget, we wouldn't be in this mess, he says.

Self-employed people have been put through the mangle this last week, he says - but there's not a word of apology from the government.

"Let me thank all those who have helped force this reversal," he says, and goes on to thank Labour leader Jeremy Corbyn who mentioned the NI raise in the response to the Budget last week.

The £2bn that would have been raised was going towards tackling the social care crisis, he says - but where is the money coming from now? In addition, we need guarantees that no working people will be hit by further tax rises.

Business Live readers have been reacting to Mr Hammond's U-turn. 

Sarah Bell says: "I think it's perfectly OK for there to be a dialogue between the government and their voters: it's a lot better than having stuff forced on us before we make our opinions expressed!"

But Clive Solman says: "It is grossly unfair doing this U-turn, we all know that many self-employed people do 'cash in hand' jobs and collect other people’s receipts so they can get the VAT back."

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Hammond answers McDonnell: "We have listened to our colleagues, we have listened to the voices of pub opinion and in my view that is how parliament should work." 

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Shadow Chancellor John McDonnell has branded today's u-turn as "chaos" and "shocking" and chastised Prime Minister Theresa May for laughing like "a feeding seal" during last week's Budget, 

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Hammond says the proposed NI changes did not "meet the spirit of that wider understanding" outlined in the Conservatives 2015 manifesto.

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Parliament

Philip Hammond is now giving a statement to the House of Commons about national insurance to loud jeers. 

The voice of business continues to largely welcome the ditching of the chancellor's NICs plans. 

This time it's the turn of the Forum of Private Business. 

Chief executive Ian Cass says: "Self employed business owners do not benefit from the likes of holiday pay and sick pay... and take personal financial risks as they add to the growth of the economy and create jobs. 

"All of these aspects should be considered as the government reviews the whole tax landscape. We will continue to push for simplicity, transparency and fairness."  

Image source, PA

Terry Christie, a builder who has been self-employed for more than 20 years, says the u-turn on National Insurance felt like a "big shadow" has been lifted.

The North Tyneside-based businessman (not pictured) tells Reuters: "I have a fleet of vans and a few lads that work for me so it would have hit us hard and potentially there could have been redundancies.

"The week just gone has been terrible, there was a lot of stress and worry. I said to my wife I felt it was the final nail in the coffin. But this is some good news and a big shadow has been lifted off the business."

Norman Smith
Assistant political editor

Image source, PA

The decision to scrap the National Insurance rise is "an enormous U-turn", not least in terms of speed, says BBC assistant political editor Norman Smith. 

It's significant because you sense for Theresa May she felt this risked her reputation personally, he says.

She wanted to protect her image as a "straight talking, no-nonsense PM", he adds.