Vape tax and national insurance cuts planned by Jeremy Hunt in Budget

JEREMY Hunt plans to introduce a new tax on vapes and cut national insurance contributions at next week’s Spring Budget.

The Chancellor has a reduction of 1% in mind insurance – but could go further depending on an assessment of the economy by the government’s economic watchdog.

The office for Budget Responsibility will present its findings to Mr Hunt on Friday, ahead of the main event on March 6.

The bill is not expected to be great as the space for tax cuts will be tighter than previously expected.

In a major win for The Sun’s Keep It Down campaign, fuel duty is expected to remain frozen for a 15th year.

But in a blow to house hunters, plans to cut stamp duty have been put on hold for now.

Cuts to inheritance tax and an expansion of child benefit to middle-income families have also been postponed, but could be timed in the autumn budget ahead of a late general election.

A new vaping tax will be imposed on imported e-cigarettes and manufacturers in a bid to make them unaffordable for children.

The excise tax will apply to the liquid in vapes, with higher levels for products with more nicotine.

There will also be a one-off tax increase on cigarettes to ensure vapes are still the cheaper option for smokers.

The two levies are expected to raise £500 million for the public purse.

But it will mean a price increase for smokers.

The vapor tax is modeled after European regulations, such as Germany, which imposed a tax of €1.60 on every 10 ml of vaping liquid.