Sunak pledges to 'abolish' National Insurance amid promise of tax cuts in manifesto pledge
Sunak outlined his party's plans to cut National Insurance once again
GETTY/PA
National Insurance could be "abolished" for millions of Britons if the Conservative Party win the upcoming General Election, Prime Minister Rishi Sunak has announced.
The Tories have published the party's manifesto as the Government attempt to woo voters ahead of polling day on July 4 with another tax cut, as well as promises to not raise income tax or VAT.
If this is implemented, the rate of National Insurance for workers will be slashed from eight to six per cent. Self-employed individuals are already this rate of the tax.
According to the Conservative manifesto, taxpayers will have saved a total of £1,350 thanks to recent reductions in National Insurance.
The manifesto states: "To support working people and secure a stronger economy, [we will] cut tax for workers by taking another 2p off employee National Insurance so that we will have halved it from 12 per cent at the beginning of the year to six per cent."
On top of this, Sunak is pledging to abolish National Insurance's main rate for self-employed people by the end of the next Parliament if he wins power next month.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Jeremy Hunt has already implemented two separate cuts to National Insurance within the last six months
GB NewsAppearing in Silverstone earlier this afternoon, Sunak said the Tories "will scrap entirely the main rate of self-employed National Insurance".
Notably, the Prime Minster is promising the end the "double tax on work", which the levy is often referred to as, "once financial conditions allow".
This latest cut to the tax on working-age people comes after Chancellor Jeremy Hunt has already implemented two consecutive reductions to the levy's rate in January and April.
Since the New Year, the National Insurance rate has been lowered from 12 per cent to eight per cent for workers.
According to the Government, these tax cuts saved a worker on the average UK salary around £900 with today's announcement expected to mean even more savings for Britons.
Ahead of today's manifesto launch, Sunak defended his party's record on the economy and managing public finances after a bruising week in the wake of the D-Day controversy.
The Prime Minister cited the Conservatives have been forced to make "difficult decisions" due to the Covid-19 pandemic but said the Government are committed to "cutting taxes for earners, parents and pensioners".
Sunak said: "In this party, we believe that it is morally right that those who can work do work, and that hard work is rewarded with people being able to keep more of their own money. We will ensure that we have lower welfare so we can lower taxes.”
Based on the Tories' latest manifesto, the party will “not raise corporation tax” if it remains in Government.
The manifesto addsL “For the very smallest businesses, the four million people who are self-employed, we will abolish the main rate of national insurance entirely by the end of the next Parliament.
LATEST DEVELOPMENTS:
Rachel Reeves has vowed income tax and National Insurance will not rise under Labour for at least 5 years
GB NEWSAs well as this, Sunak's last ditch manifesto pledge confirms the party will “keep the VAT threshold under review and explore options to smooth the cliff-edge at £90,000”.
In response, Labour's national campaign coordinator slammed the manifesto as "most expensive panic attack in history" and described the proposed cuts to National Insurance as being "unfunded".
The Labour Party are expected to launch their manifesto on Thursday, July 13.
You may like
