Britain's finance minister Philip Hammond announced a shock U-turn over planned tax hikes for the self-employed on Wednesday, one week after unveiling the measure in his flagship budget. Hammond, a key member of Prime Minister Theresa May's Conservative government, had faced a storm of criticism over the proposals, particularly from the right-wing press and senior MPs in his own Conservative Party.
The measure would have hiked up National Insurance payrolls tax on millions of self-employed people.
Chancellor of the Exchequer Hammond had previously insisted that the move - designed to raise £2 billion ($2.43 billion, 2 billion euros) over the next two years - would help ease pressure on the social care system.
Critics had expressed deep concern at the proposal which broke an election pledge not to increase VAT, National Insurance contributions (NICs) or income tax, revealing divisions in the ruling Conservatives.