Reaction continues to Chancellor Philip Hammond's dramatic climb down over controversial plans to increase National Insurance contributions for the self-employed.

The Government had faced a barrage of protests over last week's Budget announcement that he was introducing the tax hike.

On Wednesday Mr Hammond said that the Government would not proceed with the National Insurance increase after all - at least during this Parliament.

Ian Mean, Director of Business West, Gloucestershire (pictured) said: "This is a humiliating climb down for the Chancellor who faced a barrage of criticism from business.

"I wrote at the time for Business West that, rather than pausing the tax hike, Philip Hammond should reverse it.

"We can take no personal credit for this screeching U-turn by the Chancellor but we can say that we stood up for self-employed business people. We will continue to do just that."

Mike Cherry, national chairman of the Federation of small Businesses (FSB) said:

"We are delighted for our members and all the nation's self-employed that the Chancellor has recognised the strong opposition to this measure, admitting it was against the spirit of the Tory manifesto on which his party stood, and has now decided to scrap it for the duration of this Parliament.

"The army of self-employed make a massive contribution to the UK economy. We've consistently argued, since this measure was announced last week, that a tax-grab on the genuine self-employed - the hairdresser, electricians and plumbers - makes absolutely no sense.

"We look forward to engaging with the summer review into the benefits that the self-employed need to be able raise families, pay the bills when sick, and prepare for retirement. We need to see what other measures are brought forward to make sure they support the UK's small business and self-employed community."

Rob Lankey, chief executive of the National Association of Commercial Finance Brokers (NACFB), said: "Mr Hammond's swift about-turn on the subject of NICs will rally the self-employed who might have felt unfairly targeted in last week's Budget.

"Working attitudes have shifted over the last couple of years to allow for increasingly flexible employment types - the upturn in the number of self-employed workers in the economy is just one of the benefits of this.

"Last week's decision to increase national insurance contributions for this group of workers was a low-blow to businesses that rely on these innovative ways of working - such as companies within the gig economy - as well as the likes of buy-to-let property investors.

"This retreat by the Government will undoubtedly cheer businesses of all sizes, but particularly small companies that often call upon non-permanent staff to operate effectively."

Chief executive of the deVere Group Nigel Green said: "This is a stunning u-turn by the Chancellor, just a week since his Budget.

"Whilst we welcome this climb down, it does show just how out of touch this Government is with Britain's hardworking, already-squeezed and over-taxed entrepreneurs - the lifeblood of the UK economy."

He continued: "Hiking taxes on the self-employed would have only served to punish ambition and undermine aspiration to get on in life.

"This grinding u-turn is now a golden opportunity for this Government to go one step further and better incentivize those self-reliant individuals who take on the responsibility, risk and burden of setting up companies and creating jobs and wealth.

"This is perhaps more important than ever as Britain prepares to launch divorce proceedings from the EU."