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Chancellor contemplates NI tax cut – reports

  • 27/02/2024
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Chancellor contemplates NI tax cut – reports
Chancellor Jeremy Hunt is reportedly considering a National Insurance tax cut, which will be announced in next week’s Spring Budget.

First reported in The Times, Hunt is rumoured to be thinking about a one per cent reduction, which will cost around £4.5bn per year. This is lower than the 2p reduction in income tax that was speculated last month, then reportedly dropped as it was announced that the UK’s economy was in recession. 

This tax cut would have cost £13.7bn per year. 

Earlier today, the think tank Institute for Fiscal Studies (IFS) warned there was a “weak case” for notable tax cuts due to an increase in debt interest spending. It said this was forecast to be at two per cent of national income, equivalent to £55bn per year. 

The IFS said the Chancellor should consider a stamp duty cut instead, as it called the tax “particularly damaging” and said reforming this should be “front of the queue for growth-friendly tax cuts”. 

The suggestion comes after a group of Conservative MPs said the stamp duty tax should be removed for people who want to downsize. 

Hunt is also rumoured to introduce a vape tax at the Spring Budget to make the habit less affordable and discourage young people from taking it up. 

Other speculated measures include the launch of a 99 per cent mortgage scheme. 

The Spring Budget will take place on 6 March. 

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