- The UK has faced unprecedented challenges in recent years caused by the pandemic and Putin’s illegal invasion of Ukraine. By sticking with the plan, the Conservatives have restored economic stability, reduced inflation, boosted wages, created more jobs, cut taxes and increased growth. But there is more to do.
- The Conservatives have set out a long-term ambition to end the unfair double tax on work when it can be afforded. As part of the Conservative Party’s 2024 election manifesto, to recognise the unique contribution of the risk-takers in our economy and the insecurity they face, they will abolish the main rate of National Insurance entirely for the self-employed by the end of the next Parliament.
- Only Rishi Sunak and the Conservatives have a clear plan and will take the bold action needed to deliver a brighter and more secure future for people across Medway.
Councillor Perfect has welcomed the launch of the Conservative Party’s 2024 election manifesto, setting out a clear plan and bold action to build a brighter future for people across Medway.
As part of the clear plan to support working people and build a strong economy, the Conservatives have set out bold action to abolish the main rate of National Insurance for the self-employed.
Over the next Parliament, the main rate of Class 4 NICs will fall to 5 per cent in April 2025, 4 per cent in April 2026, 3 per cent in April 2027 and 2 per cent in April 2028, before being abolished entirely in April 2029.
This follows the tax cuts already delivered for self-employed people and is the next step in the Conservatives’ long-term ambition to end the unfair double tax on work, which sees working people pay two types of tax on their income – income tax and National Insurance – when other people only pay income tax.
Combined with the tax cuts already delivered this year, this is a tax cut for the average self-employed person on £28,000 worth over £1,500 a year. Two million self-employed people will benefit and take 93 per cent of self-employed people out of paying Class 4 NICs.
The choice is clear in this election: stick with the plan to cut taxes and ensure people keep more of their money with Rishi Sunak and the Conservatives or go back to square one with Keir Starmer and the same old Labour Party who will raise taxes by £2,094.
Councillor Perfect said:
“I know the past few years have been challenging following Putin’s illegal invasion of Ukraine and Covid. Only the Conservatives have a clear plan to deliver a brighter and more secure future.
“This is another step towards the long-term ambition to end the unfair double tax on work when it is affordable to do so, and will put more money in people’s pockets across Medway to reward hard work and entrepreneurial spirit.
“The choice for voters at this election is clear: stick with Rishi Sunak and the Conservatives who have a clear plan and will take the bold action needed to secure a brighter future for people across Medway. Or go back to square one with Keir Starmer and the same old Labour who will put up taxes by £2,094 for every working household.”
ENDS
Notes to Editors
The Conservatives are supporting working people and secure a stronger economy by:
- Abolishing the main rate of Class 4 NICs for the self-employed. We have already abolished Class 2 National Insurance contributions and cut the main rate of Class 4 National Insurance from 9 per cent to 6 per cent. In the next Parliament, we will abolish the main rate of Class 4 NICs entirely. The rate will fall to 5 per cent in April 2025, 4 per cent in April 2026, 3 per cent in April 2027 and 2 per cent in April 2028, before being abolished entirely in April 2029 (Conservative Party, Conservative Party Manifesto 2024, 11 June 2024, link).
- Delivering a £1,500 tax cut for the average self employed person, recognising the contribution they make to our economy. Combined with the tax cuts we have already delivered this year, this is a tax cut for the average self-employed person on £28,000 a year worth over £1,500 a year. Two million self-employed people will benefit (Conservative Party, Conservative Party Manifesto 2024, 11 June 2024, link).
- Taking 93 per cent of self-employed people out of paying Class 4 NICs. Abolishing the main rate of Class 4 NICs below the threshold of £50,270 would take 1.93 million of the current 2.23 million self-employed payers out of paying Class 4 NICs entirely. This would mean that 93 per cent of all self-employed people turning over a profit would not pay Class 4 NICs (Conservative Party, Conservative Party Manifesto 2024, 11 June 2024, link).
- This policy will cost £2.6 billion a year by 2029-30. It will be funded through our plan to deliver £12 billion a year in welfare savings and £6 billion of revenue raised from cracking down on tax avoidance and evasion by the end of the next Parliament (Conservative Party, Conservative Party Manifesto 2024, 11 June 2024, link).
