6 Mar 2024

Chancellor announces 2p National Insurance tax cut

Political Editor

With his eye firmly on the next election, Jeremy Hunt says he is delivering “much-needed help in challenging times”.

But there were few surprises in this highly trailed budget. First, the giveaways: the centrepiece was the National Insurance cut of 2p in the pound for employees, the second 2p cut in six months.

Full child benefit will now be paid to households where the highest-earning parent earns up to £60,000 – up from the current £50,000 – with partial child benefit for those earning up to £80,000.

Fuel duty stays frozen, with the 5p cut for petrol and diesel kept for another year.

And to pay for them, two Labour policies: tax breaks will be abolished for UK residents who are not domiciled here for tax purposes, after four years of residence.

And the windfall tax on the profits made by oil and gas companies will be extended for another year to 2029.

Tax breaks will also be scrapped for the owners of short-term holiday lets. And there’ll be a new tax on vaping products.