House of Commons
Parliament

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Labour's Angela Eagle asks what will be done to protect the potential £14bn the Chancellor says will be lost through differential tax rates between self-employed and employed.

She says that by delaying changes until after the review means the "only measure" which raised tax in the Budget will be lost. 

The Chancellor replies that Ms Eagle wants to have to "have her cake and eat it" by asking him to keep the promises made in the manifesto, whilst dealing with the tax revenue lost through changes in self-employment.  

He says that the review will mean that the fairest way of dealing with the issue will be found.

House of Commons
Parliament

One of the Chancellor's critics from his own party, Anne-Marie Trevelyan, welcomes the reversal. 

She says it's time for a "holistic and simplified" reform of tax for the "genuinely self-employed", whom she describes as taking risks to create wealth.  

The chancellor answers that he "will always be on the side of those who strive to take risks and grow businesses" but "there is a problem of bogus self-employment". 

House of Lords
Parliament

The Lords start, as usual, with oral questions - today's include questions on EU students, disability access, online abuse and reclaiming legal costs.

Next there will be repeats of the two urgent questions - PIP regulations and wearing religious signs - followed by a repeat of the oral statement on NI contributions.

Then peers can get stuck into some legislation - the third reading of the Neighbourhood Planning Bill and the Higher Education and Research Bill at report stage.

It all kicks off at 3pm

House of Commons
Parliament

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Former shadow chancellor Chris Leslie says this is embarrassing for colleagues and the prime minister, who have defended the breaking of the manifesto commitment not to raise NI. 

Has the chancellor apologised to his colleagues, he asks?

Philip Hammond says he's had conversations with colleagues and the prime minister over the past few days - and he's not about to give the details of those private conversations to the House.

House of Commons
Parliament

The SNP's Treasury spokesman, Stewart Hosie, tells MPs that he warned the Chancellor's announcement would "come back to bite him".

He says that 140,000 Scottish people would have been affected by the changes. 

He asks for assurance the government will not now seek to raise funds by reaching into the pockets of "modest earners". 

Philip Hammond responds that the Spring Budget will no longer be fiscally neutral but he is "committed" to addressing that.

House of Commons
Parliament

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Treasury Committee chair Andrew Tyrie welcomes the decision, but asks whether differential in rates should remain in the long term to reflect the "additional risk" taken by the self-employed. 

The chancellor replies that the idea behind the rate increase was to "close the gap" and not to equal it. 

He says that they will be looking closely at the review into what needs to be done and come back to the issue with a fairer policy. 

House of Commons
Parliament

The chancellor says he wouldn't take lessons from John McDonnell "except on chaos theory". 

He adds that "we've listened" to "legitimate concerns" and: "This is how Parliament should work."

He says however he pays for the shortfall "it won't be by borrowing trillions of pounds" as he claims Labour would do.

House of Commons
Parliament

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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.

House of Commons
Parliament

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The Chancellor opens by reiterating that the "gap between benefits available to self-employed and employed has closed greatly in recent years" and that "current differences in entitlement are no longer justified."

Philip Hammond says that the changes reflected changes in who was self-employed and why, and the Budget measure was a fair reaction to this. 

He says that although the National Insurance rate lock only applied to rate one contributions, there was a "wider understanding" of what the tax lock meant. 

He says that after conversations with colleagues, the government must adhere to "not just the letter, but the spirit" of the promise that was made in their manifesto. 

He therefore says that the rate will not increase in this Parliament. 

He say that there will be further investigation into how the tax treatment of the employed vs self-employed, and that ensuring it is more fair is the "right thing to do". 

House of Commons
Parliament

The Chancellor is on his feet for his statement on Class 4 National Insurance Contributions.

Chancellor Philip Hammond announced in the Budget that the rate for Class 4 NICS - a tax on the self-employed earning over £8,060 - would rise from 9% to 10% in April 2018, and to 11% in 2019.  

The move was criticised by many including Conservative MPs. 

Theresa May is in the Commons to listen to the statement.

House of Commons
Parliament

There is cross-party condemnation of the European Court of Justice ruling with no members defending it. 

Conservative Philip Hollobone says it is "another unwelcome ruling" by the court and Michael Fabricant says that in the case of France, it had made religious tensions worse. 

Labour's Chuka Ummuna says that the ruling sends a worrying signal about what religious symbols are acceptable and which aren't. 

House of Commons
Parliament

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Conservative David TC Davies says that there is a clear difference between the headscarf and full burka, but asks what the minister thinks of "at least two local police forces" who are considering applications from the latter.

The minister replies that where it is considered  safe for someone to wear their religious clothing in the workplace, they are encouraged to do so. 

House of Commons
Parliament

Labour's Sylvia Hermon asks whether there will be emergency legislation in case the ruling influences British law which can ensure a woman's right to wear a headscarf. 

The minister says that the ruling is merely guidance to British courts, but that the government will watch closely any future decisions made based on it. 

House of Commons
Parliament

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Shadow minister for women and equality Sarah Champion thanks the minister for her "strong" reinforcement of British liberal values. 

She says that employees must be able to express their religious beliefs in whichever way they chose. 

The SNP's employment spokesperson Neil Gray says that any discriminatory practices should not be allowed in the workplace and says the case raises concern. 

House of Commons
Parliament

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Maria Miller responds that "clarity" is needed, particularly as the ruling impacts an already marginalised group - Muslim women. 

The minister replies that where companies choose to have a dress code, it must be proportionate and apply equally to all employees. 

The employer must also be able to defend the decision in front of a tribunal, if necessary. 

She reiterates that in having this rule, it does not prioritise or discriminate any religions.