Budget announcement 2024: Hunt to slash national insurance by 2p amid claims of surprise income tax cut

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Sunak takes aim at Starmer: ‘We expel antisemites, he makes them Labour candidates’

Jeremy Hunt has vowed to unveil “permanent” tax cuts in today’s Budget, as a result of “the progress we’ve made” in delivering on Rishi Sunak’s economic priorities.

With the Tories’ popularity languishing at a 45-year low, the chancellor is widely expected to hand voters another 2p cut to national insurance contributions, in a repeat of his autumn statement – with some reports even suggesting an additional 1 per cent cut to income tax could be forthcoming, citing a cabinet minister.

But leading pollster Professor Sir John Curtice told The Independent that he would be “surprised” if the move, expected to be announced by Jeremy Hunt on Wednesday, improved the Tories standing in the polls – with reversing the “pretty awful state” of public services deemed to be a larger priority for voters.

And experts warned there are “huge questions” about whether Britain can really afford such a move, with Resolution Foundation economist Adam Corlett warning it will likely only lead to tax increases after the general election.

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Jeremy Hunt holds up red box in front of No 10

(REUTERS)

Andy Gregory6 March 2024 10:49

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Judge the Budget on its merits, not its electoral potential, says think-tank chief

Torsten Bell, head of the Resolution Foundation think-tank, has issued a plea for analysis of today’s Budget not to be primarily through the lens of a looming general election.

Andy Gregory6 March 2024 10:41

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Jeremy Hunt could announce surprise cut to income tax too, minister claims

While many are now expecting a 2p cut to national insurance in today’s Budget, one cabinet minister has been quoted as telling Politico that the chancellor could also cut income tax by 1 per cent.

The prospect of Jeremy Hunt opting to cut both taxes seems unlikely given the current state of Britain’s economy – but some Tories have urged the chancellor to choose cutting income tax instead of national insurance.

Ex-home secretary Priti Patel said cutting income tax would “show we back working households”, while another Tory MP was quoted as telling Politico that “there’s no use cutting national insurance” because “no one understands it, or if they do they just don’t think it will make any difference”.

Andy Gregory6 March 2024 10:31

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Watch: Vegan caller ‘put off’ voting for Labour due to Keir Starmer being merely vegetarian

Vegan caller ‘put off’ voting for Labour due to Keir Starmer being merely vegetarian

Andy Gregory6 March 2024 10:08

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What would you like to see announced in the spring Budget?

If you were given the reigns to Number 11, what policies would you implement?

Would you be keen to see more help introduced for first-time buyers? Or would you rather see enhanced VAT relief on electric vehicle charging brought in?

Andy Gregory6 March 2024 09:50

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Think-tanks say NI tax cuts will widen economic and financial disparities

Jeremy Hunt is widely expected to cut a 2p off of national insurance today in a mass giveaway for voters ahead of the general election. But think tanks have said this could plunge thousands of families into poverty.

The Institute for Public Policy Research (IPPR) said that a further 2p cut in the pound would cost the government £10.4bn, and almost half of that would end up in the pockets of the richest 20 per cent of households, while a meagre 3 per cent of the funding would benefit the poorest 20 per cent of families.

Meanwhile, the New Economics Foundation (NEF) has cautioned that even a 1p tax cut would cost the government £4.8bn, with almost half going to the richest households – while the poorest receive just £160m.

It added that the 1p cut alone would push more than 55,000 people into relative poverty. If invested into universal credit it could instead lift 384,000 people out of poverty with an additional £720 per year.

Zoe Grunewald, Political Correspondent6 March 2024 09:40

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Watch live as Jeremy Hunt presents red box on Downing Street ahead of Budget

You can watch live as Jeremy Hunt holds up the red box outside Downing Street ahead of the Budget:

Oliver Browning6 March 2024 09:33

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Ask our chief political commentator anything about the budget

John Rentoul, The Independent’s chief political commentator, is on hand to explain how planned tax cuts could affect both your wallet and wider confidence in the Tory party.

Andy Gregory6 March 2024 09:30

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Tories gain one point on Reform in new polling

New polling by Savanta appears to see the Tories steal one point from Reform – which still leaves them trailing 17 per cent behind Labour, who command 44 per cent of the vote.

Andy Gregory6 March 2024 09:29

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Budget 2024: What is Jeremy Hunt’s record on cutting and raising taxes?

Jeremy Hunt will make his spring Budget announcement today, amid reports he could cut taxes for UK households in some fashion.

My colleague Albert Toth takes a look at the chancellor’s previous record on tax initiatives:

Andy Gregory6 March 2024 09:22



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