National Insurance cut by 2p in Spring Budget Mortgage Finance Gazette

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Chancellor Jeremy Hunt confirmed a 2p cut in National Insurance (NI) in the Budget today (6 March), worth around £450 a year for someone on an average salary.

06/03/2024. London, United Kingdom. The Chancellor of the Exchequer Jeremy Hunt poses outside 11 Downing Street with the Red Box, alongside the other Treasury ministers, before he delivers the Budget to parliament. 10 Downing Street. Picture by Simon Walker / No 10 Downing Street

The cut, widely trailed in advance of the Budget and applying from 6 April, will cost the Treasury approximately £10bn a year.

According to advance figures from Evelyn Partners, those earning £20,000 will save £149 a year; those earning £30,000 will save £309 a year; and those earning £40,000 will save £549 a year.

Higher and additional rate taxpayers, meanwhile, would save £754 a year.

Prior to the Budget, Lindsay James, investment strategist at Quilter Investors, said: “While this cut would be welcome news to hard-pressed taxpayers, in the context of frozen tax thresholds and other planned tax rises in the years ahead in areas such as stamp duty land tax, the tax burden is still on track to exceed all-time highs. Meanwhile, public services continue to be a source of frustration for much of the electorate.”