The Government announced a controversial hike in National Insurance for the self-employed as part of the Chancellors budget. After uproar in the media, the Government released their intention to reverse this decision. It is thought that the decision to repeal the increase in National Insurance is a good thing, and the Federation of Master Builders has suggested that the Government has made the right decision.
The Federation of Master Builders was created in 1941 in order to protect the interests of Small and Medium sized construction firms. The Federation is a non-profit organisation which is involved in lobbying at both national and local level for members’ interests. The organisation can also be used as a source of knowledge as well as professional advice and support for its members. There is also a focus on being a source of building services that are both modern and relevant for construction businesses wanting to be successful.
The federation has suggested that during the current economic climate, the Government needs to be pursuing economic stability. With the UK planning on leaving the European Union in the near future it could have seemed very unfair to and detrimental to the entrepreneurial industry to increase the National Insurance contributions. In a time when the economic future for the UK is cloudy, increasing the taxes of entrepreneurs and the self-employed could be counterproductive.
The Federation of Master Builders has pointed out that a debate needs to be had by the Government to ensure that there is an even playing field in taxation for both the self-employed and directly employed. However, the Federation suggests it should be done in a way that will allow a chance for those affected to plan ahead, not simply announced in a budget statement. Any changes in taxes need to be done in a way that is fair and implementable for the self-employed.