This year the day of the #budget2017 was also #internationalwomensday2017. This is probably the last time that the two will collide on the calendar as the chancellor’s budget is being moved to the autumn in place of the autumn statement (which Philip Hammond has abolished).
I know, I know. Stay with me. So far so boring, but some of Philip Hammond’s announcements are actually worth paying attention to. This year there were no big surprises or splashes (like when George Osborneannounced Help To Buy) however, there were also no scandals (see George Osborne and his pasty tax which was essentially a tax increase on hot food).
This was a reasonably dull and short budget. Let it henceforth be known as the Boring Pre Brexit Budget which didn’t actually mention Brexit. Hammond promised he would not be 'flashy' and he was true to his word. There were no exciting, fluffy rabbits pulled out of hats at the last minute. However, there was lots of talk about how strong our economy’s growth is (which translates as Brexit is going to be a blast guys, we promise), investment for social care of £2 billion (however the British Medical Association has said it needs closer to £10 billion to combat the social care crisis so this is really like a sticking plaster on a broken leg), funding for 110 new free schools as well the usual minor increase in the personal tax-free allowance and the expected sugar tax.
Beyond that here are the two things you should probably know about:
First up, Women
It is International Women’s Day so you can’t blame the government for taking the opportunity to big up some #worthy things they’re doing for women…
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A £20 million fund was announced to combat domestic violence and abuse
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A £5 million fund for celebrations to take place next year when it will be 100 years since women won the vote.
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A promise of £5 million to support people returning to work after long breaks (i.e. women who’ve had babies).
Sophie Walker, leader of the Women's Equality Party says:
‘Hammond's offer of 5 million pounds to celebrate the centenary of women’s suffrage adds insult to injury as women in every corner of our country pay the price of successive governments’ failure to acknowledge their economic contribution. Celebrating women’s historic emancipation is important, but perhaps the Chancellor could invest in our future freedoms?’
And then, self-employment
Ok so, on the whole, the main take home from this budget is that it isn’t great news if you’re self-employed. Here's why:
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The Chancellor promised to help companies who will be hit by planned business rate rises, but has also increased the national insurance bill for many self-employed people out there.
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The Chancellor said he wanted to do something about the gap between National Insurance contributions between those who are self-employed and currently paying less in tax.
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As things stand, people in full-time employment pay 12% income tax and national insurance straight from their monthly pay, however self-employed workers pay slightly less. That said, they also don’t get sick pay, decent maternity pay or holiday pay.
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So, from next year Hammond is raising the rate of national insurance for self-employed people from 9% to 10% and then 11% the year after that.
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This measure could be a way of ensuring that the government is able to tax the increasing number of people working on a freelance or contractual basis in the emerging ‘gig economy’ to the max.
Not everyone thinks this is a good idea. Indeed, it does seem somewhat unfair that self-employed people will now pay more tax without enjoying the same benefits as those in full-time staff jobs. More than this, it's not unheard of these days for businesses to employ their staff as contractors on a self-employed basis in order to avoid paying tax themselves which is something the Government ought to consider here.
There's also speculation about whether this is going back on a Tory manifesto promise before they won the election in 2015...
You might also be interested in:
Are Help To Buy And Shared Ownership Schemes Screwing First Time Buyers Over?
Follow Vicky on Twitter @Victoria_Spratt
This article originally appeared on The Debrief.