TWO Welsh farming unions have slammed a planned rise in National Insurance contributions for self-employed people as “bad news for Welsh farmers”.

Chancellor of the Exchequer Philip Hammond announced in his budget that National Insurance payments will rise for the self-employed by one per cent to 10 per cent from April next year and then rise again to 11 per cent in 2019.

The Farmers’ Union of Wales says the increase will hit low and middle-earning self-employed people and, as the majority of Welsh family farms are classed as such, the measure will do little to support rural businesses.

FUW managing director Alan Davies said: “This increase will hit farmers across the UK badly - at a time when they are already having to cope with an increase in business rates, which of course is devolved to Wales, but the increase in National Insurance contributions is not.

“Add to that the uncertainty surrounding future agricultural support, and those making a living from agriculture are not being put in the most favourable financial conditions.”

NFU president Stephen James agreed.

He said: “There were few measures in last week’s Budget to help create an environment that supports productive, progressive and profitable farm businesses.

“The rise in National Insurance contributions for the self-employed by one per cent next year, and a further one per cent the year after that, will have a detrimental impact for farmers."

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