Labour accuses May of getting her NICs in a twist

The government was accused of a “partial u-turn” over its controversial Budget plan to raise taxes on the self-employed after Prime Minister Theresa May said it would not be presented to parliament until the autumn.

May and Chancellor Philip Hammond have been under intense pressure since the move to increase National Insurance contrubutions, known as NICs, was unveiled on Wednesday, breaking a Conservative Party 2015 manifesto pledge not to hike income or sales taxes.

The move has attracted criticism from both sides of the political divide. Conservative MPs are especially worried as they feel it is an attack on entrepreneurs, whom they regard as their natural constituency.

May would need to listen to those concerns – at least 14 of MPs have spoken out against the policy. Her working majority in the House of Commons is 16.

The prime minister attempted to take the heat out of the issue by saying that nothing would be voted on until after a review on modern employment practices was published in the summer.

"People will be able to look at the government paper when we produce it, showing all our changes and take a judgment in the round,” May told journalists in Brussels on Thursday.

"Of course the chancellor will be speaking, as will his ministers, to MPs, business people and others to listen to the concerns.”

However, shadow chancellor John McDonnell said May should scrap the move altogether.

"The fact the prime minister won't fully support her own chancellor's Budget measure, and has been forced by Labour to row back on it just 24 hours after he delivered his speech in Parliament, shows the level of disarray that exists at the top of government," McDonnell said.

He added that May should "show some leadership, rather than this partial U-turn, and just scrap these tax rises for low and middle earners altogether".

Hammond said on Wednesday the government would raise the level of Class 4 NICs for the self-employed to 10% from in April 2018, with a second rise to 11% in 2019.