Chancellor Jeremy Hunt will announce a further cut in national insurance in his budget tomorrow, Sky News understands. But rather than cutting taxes, many councils are having to cut services due to an existential funding crisis. Hear more on the Sky News Daily podcast as you scroll.
Sky News understands the chancellor will cut national insurance by two percentage points in tomorrow's budget .It's a move that would impact 27 million people, worth £450 a year for the average person, and comes just months after the rate was slashed from 12% to 10%.
Analysis by the investment platform AJ Bell reveals that cutting the NI rate to 9% would mean an annual saving of £124 for someone on £25,000, all the way up to a saving of £377 for anyone earning more than the £50,270 threshold.A fall to 8% would be worth almost £250 to someone on £25,000, with a maximum saving of £754.