The government has scrapped a tax cut for almost 3m self-employed people that could have saved each of them about £150 a year.

The abolition of class 2 national insurance contributions — which apply to those earning more than £6,205 of profit each year — was set to be implemented in April this year but was delayed by 12 months.

On Thursday, however, the government revealed that the planned cut would no longer go ahead under this parliament.