GOVERNMENT plans to increase National Insurance levels for self-employed people – announced in the Budget last week – have been dropped by the Tory Chancellor and the Tory government after a major revolt inside the Tory party against its unelected leader and arrogant Chancellor.
Hammond had faced a furious backlash by Conservative backbenchers, who accused him of breaking a general election manifesto commitment not to put up National Insurance. Chancellor Hammond told the House of Commons yesterday that the government will not proceed with the increases. In a letter to Tory MPs, he said: ‘There will be no increases in … rates in this Parliament.’
The crisis of the Tory party has now been greatly deepened. Cameron’s historic blunder in calling an In-Out referendum on the EU, seen as a desperate way of dealing with the Tory right wing, backfired with enormous force, when the working class seized this opportunity to knife both the EU and its British front men, leaving Cameron and Osborne with no other road but to fall on their swords.
The Tory party was plunged into crisis to the extent that the 1922 Committee lost control of the party and to restore its control had to halt the leadership election of a new party leader by simply nominating May, without a vote as the Tory leader. May had been in the ‘Remain camp’, as had Hammond but none of the Brexit tearaways could be trusted with the fortunes of British capitalism, so the crown was handed to May.
She then sought salvation by adopting a Miliband-type policy of a posed ‘acute concern’ for the ‘just about managing’ and saw this pose as a source for sustaining the government and even for the future success for her government. However a leopard cannot change its spots and along came the arrogant Hammond, now Chancellor, with his Spring budget and also with a premonition of disaster.
He tried to make a joke of his predicament telling the House of Commons: ‘As the House knows, this will be the last Spring Budget. The Treasury has helpfully reminded me that I am not the first Chancellor to announce the “last Spring Budget”.
‘Twenty four-years ago, Norman Lamont also presented what was billed then as “the last Spring Budget”. He reported on an economy that was growing faster than any other in the G7, and he committed to continued restraint in public spending.
‘The then Prime Minister described it as the “right budget, at the right time, from the right Chancellor”. What they failed to remind me was … ten weeks later, he was sacked! So wish me luck.’ However, Hammond may well break Lamont’s 10-week record, since he could not resist raising the National Insurance Tax of the ‘just about managing’ small proprietors.
This threw the Tory party into a rage since the rampaging ‘small employer’ self-employed element is seen as the only possible future for British capitalism.
They turned on Hammond like mad dogs for ‘attacking the wealth creators’, and were determined that either the tax rise or Hammond and May would go. Many ask how is it that a well-educated spokesman for the Tory Party like Hammond could make such a mistake and why did not May correct it pre-budget.
The answer lies in the absolutely desperate crisis of British capitalism, the fact that it has lost and will never regain its world role and its ruling class are being reduced to the level of ruthless scavengers, instead of rapacious exploiters of the working class of the world.
The world crisis is breaking British capitalism apart. It not only has had its day, but its time is up and it is rotten ripe for being overthrown by the working class, in a historic socialist revolution that will transform the world. The predicament of the ruling class is summed up in the ancient saying, ‘Those whom the gods wish to destroy they first make mad.’
The world crisis of capitalism is tearing its weakest link apart. Today, a century after the Russian Revolution, the UK working class has been handed the task of overthrowing British capitalism with a socialist revolution and then helping to spread it all over Europe. This is what must be done!