29 Feb 2024
Reports have suggested that Chancellor Jeremy Hunt is considering cutting national insurance in the Spring Budget on Wednesday 6 March.
According to economists, the Chancellor is seeking to make 'smart tax cuts' aimed at boosting the UK economy.
According to the BBC, Mr Hunt is considering slashing national insurance in the Budget on Wednesday, rather than income tax.
During the 2023 Autumn Statement, the Chancellor announced a significant cut in national insurance which saw the main rate reduced from 12% to 10%. The BBC stated that an additional cut to national insurance of just 1% would cost £4.5 billion per year.
However, the Institute for Fiscal Studies (IFS) has warned that tax cuts should be implemented at a later date. Carl Emmerson, Deputy Director at the IFS, said: 'We don't think we should be implementing certain tax cuts now, essentially that are paid for by uncertain spending cuts that might never be delivered.
'There's lots of problems in our tax system - we need genuine tax reform - and if we want growth-friendly tax cuts we should be looking at stamp duty on purchases of properties and stamp duty on purchases of shares.'