Philip Hammond's NICs Budget U-turn: 7 embarrassing times politicians have had to wheel back pledges after backlash

He's not smiling now: backlash to Philip Hammond's planned National Insurance hike caused the Government to enact an embarrassing U-turn
He's not smiling now: backlash to Philip Hammond's planned National Insurance hike caused the Government to enact an embarrassing U-turn Credit: AP Photo/Matt Dunham

Philip Hammond has had to announce an embarrassing U-turn after his proposed National Insurance tax hike provoked widespread outrage across the political spectrum.

But he isn't by any means the first Chancellor to have to publicly change his mind about a Budget announcement.

Remember when George Osborne got into a pickle over pasties and Gordon Brown angered parents by proposing to ditch family-friendly policies? 

Here are some of the most embarrassing Budget U-turns politicians have faced in recent years.

1. George Osborne's omnishambles 2012 u-turns

The former Chancellor may want to forget the 2012 Budget, which damaged his credibility so badly he promised to learn from his mistakes.

In a bid to tackle unfairness in the VAT system George Osborne announced that all hot food such as pasties and sausage rolls would be taxed an extra 20 per cent, prompting uproar across the country. 

Eventually the plans were toned down so that savoury treats that are out of the oven and cooling down don't incur the tax. 

In the same Budget Mr Osborne also had static caravan owners in his sights as he hiked the VAT to 20 per cent. After an outcry, particularly in Yorkshire where most models are made, he reduced the tax two months later to 5 per cent.

2. George Osborne and tax credits

The tax credit row was one of the biggest backbench rebellions over a Budget measure on the Tory benches this parliament. 

MPs were concerned that David Cameron appeared to promise tax credits would not be cut and that the Government would protect working families, while at the same time announcing measures to do just that. 

In his 2015 Budget George Osborne was forced to scrap the decision altogether, taking a financial hit worth billions of pounds rather than do battle with MPs having only a small majority. 

3. Alistair Darling and the 10p tax rate

Just a month after announcing the abolition of the 10p tax rate in 2008, former Labour Chancellor Alistair Darling was forced to water it down when faced with a revolt on his own benches, the first of Gordon Brown's fledgling premiership. 

Labour MPs argued that the decision would hit those on the lowest incomes, letting down voters the party had vowed to protect. 

As a result, Mr Darling promised to introduce new protections for those who would see the rate withdrawn and to backdate the help, prompting Frank Field to withdraw his amendment which had secured the signatures of 45 Labour MPs. 

4. John McDonnell's position on the fiscal charter

Although not strictly a Budget u-turn as John McDonnell, the shadow Labour Chancellor, wasn't in power, it was the opposition's reaction to George Osborne's fiscal charter which caused a deep rift in the party. 

After Mr Osborne vowed to introduce and stick to a new set of fiscal rules in the 2015 Autumn Statement, Mr McDonnell initially backed the plans and told Labour MPs to vote in favour of the Budget. 

But after reflecting on the decision two weeks later Labour decided to u-turn, prompting Ben Bradshaw to walk out of a meeting with the shadow chancellor in frustration.

5. When Harriet Harman had to fight her own party for parental leave equality

Gordon Brown 'U-turned' on family-friendly policy in 2009 by deciding to let parents split maternity leave after six months.

Harriet Harman, the Equalities Minister and deputy Labour leader battled Lord Mandelson, the Business Secretary.

She championed the extension of the parental rights, but Lord Mandelson had argued that businesses need to be shown some consideration in the recession.

Many were angered by Harman's pledge, and there was a backlash including a website called harrietharmansucks.com. 

Mandelson had appeared to have won the Whitehall battle when the plan was initially shelved at the end of May, but Mr Brown ended up agreeing with Mrs Harman - but said he would delay the plans until April 2011, by which time of course he was no longer the Chancellor.

This was still a walk-back from their 2005 pledge to give all fathers 6 months paternity leave.

6. When the pensioner revolt caused a 'granny flat' U-turn

Last year, plans to tax granny flats were dubbed as “morally wrong and economically illiterate” and accused of forcing grandparents to move away from their families and into care homes.

The increase in stamp duty was intended to hit buy-to-let investors and second home owners, but accountants and estate agents say the small print will also embroil tens of thousands of families looking after elderly relations.

However, David Gauke, the then financial secretary to the Treasury, said the Government would drop the plans and table a fresh amendment to the Budget.

7. Jeremy Corbyn's five U-turns in his first two weeks as leader

The Telegraph's Christopher Hope listed these, ranging from the National Anthem to the EU.

Jeremy Corbyn hasn't U-turned as much recently, but many have said his responses to recent issues such as a second Scottish independence referendum have been confused at best.

 

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