Steven Swinford also explains why cutting national insurance is cheaper than a cut to income tax:
Cutting income tax is significantly more expensive as it benefits both workers and pensioners.
A cut of two percentage points in employee national insurance costs about £10 billion a year, while a 2p cut in income tax would cost £13.7 billion a year. There are also concerns that cutting income tax would be inflationary.
More here (£).
Updated at 06.00 EST
Jeremy Hunt ‘will cut national insurance by 2p in the budget’
Back in the political world, Steven Swinford of The Times reports that tomorrow’s budget will include a national insurance cut of two percentage points.
A 2p in the pound reduction will cost an estimated £10bn, he reports.
EXCLUSIVE:
Jeremy Hunt will cut national insurance by 2 per cent in the Spring Budget tomorrow
It will cost £10bn and be worth £450 for the average worker. He will sell it as £900 worth of tax cuts when combined with 2 per cent NI cut in Autumn Statement
As per @SamCoatesSky…
— Steven Swinford (@Steven_Swinford) March 5, 2024
