Scrapping National Insurance will not be happening “any time soon”, Jeremy Hunt has confirmed.
Earlier today, the Chancellor said the tax on working-age people will likely remain in place for the foreseeable future.
These comments come after Mr Hunt said the Government’s aim is to tackle the “double tax on work”.
This is in reference to income tax and National Insurance, which was cut yesterday, but it appears abolishing the latter levy has been ruled out.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Mr Hunt has ruled out National Insurance being scrapped "any time soon"
GETTY
Speaking to reporters, Mr Hunt said: “That’s a huge job. I don’t think it’s realistic to say that’s going to happen any time soon.”
During the Spring Budget, the Chancellor announced the rate of National Insurance will be slashed from ten per cent to eight per cent.
According to the Government, workers on the average salary in the UK are expected to save £450 a year when the rate cut is implemented in April.
Combined with January’s cut to National Insurance, the average employee are expected to save around £900 a year.
Overall, the Government has reportedly spent around £10billion on the most recent cut to National Insurance but experts have warned the UK’s tax burden is at the highest its been since World War II.
This is primarily due to the impact of fiscal drag with the tax allowances remaining frozen while wages rise. In last year’s Autumn Budget, Mr Hunt confirmed thresholds would be frozen until 2028.
Analysis suggests that real household disposable income will plummet by 0.9 per cent, which is the first time a modern Government has seen a drop in living standards.
When asked about fiscal drag, Jeremy Hunt claimed he is “not pretending” to have “brought all those taxes down”.
LATEST DEVELOPMENTS:
Jeremy Hunt outlined his plans for the economy in his Spring BudgetPAHe cited that the revenue raised by frozen allowances is required to pay for Covid-era measures, such as the furlough scheme, and energy bill support.
“I’m not pretending that I brought all those taxes down in one go. We can’t afford to do that,” Mr Hunt told Times Radio.
“It wouldn’t be responsible to do that. But do I want to carry on bringing them down, as I did yesterday, as I did in the autumn statement? Yes, I do.”
The cut to National Insurance will be introduced in April 2024.