FEARS have been voiced that Tory Budget plans to hike National Insurance contributions for self-employed people could suffocate enterprise in the Highlands.

The rise, a breach of the party’s 2015 manifesto, will be particularly harmful to the Highlands because of its high rates of self-employment, according to two SNP MSPs.

Research by the Federation of Small Businesses shows the region boasts several of Scotland’s most entrepreneurial areas. Ullapool, Newtonmore, Kingussie, Portree, Drumnadrochit and Fortrose are all among the top 20.

Kate Forbes, MSP for Skye, Lochaber and Badenoch, said: “Not for the first time, the Tories’ broken promises and austerity plans are going to hammer hard-working Highland communities. These measures will make life much more difficult for those wanting to grow their own business.

“At a time when the Scottish Government is creating opportunities for rural areas through digital connectivity, the Tories in Westminster are bringing in disproportionate measures that could suffocate Highland entrepreneurs.

“I am proud to be part of a Scottish Government that wants to support and reward businesses in the Highlands, and that will help boost the region’s economy.”

Highland and Islands MSP Maree Todd MSP, who is originally from Ullapool – which has Scotland’s highest self-employment rate – added: “Nearly 18 per cent of people in Ullapool are self-employed, making it the most enterprising town in Scotland.

“The Tories claim to be the party of business and enterprise but they are delivering an almighty blow with their ill-thought-out plans.”

Chancellor Philip Hammond announced last week that the main rate of Class 4 National Insurance contributions for self-employed people would increase by one per cent to 10 per cent from April 2018, with a further one per cent rise the following year.