Struggling workers are in line for another cut to National Insurance payments in next week’s Budget, the Prime Minister has strongly hinted.
Rishi Sunak indicated that the further push to take home the paycheck is on the cards during a giveaway ahead of the elections.
Despite the alarm bells from the Treasury, a deficit of £2 billion has emerged, according to the latest growth forecasts.
In recent weeks the Prime Minister and Chancellor Jeremy Hunt have tried to play down more giveaways, with only around £13bn of headroom available.
The forecasts are so dire that the chancellor became embroiled in back-to-back meetings this week as he went back to the drawing board, insiders said.
But the Prime Minister, who is speaking Scotland yesterday, National said Insurance is a “tax on work”.
And he continued: “I believe in a country where hard work is rewarded. Cutting back on national insurance rewards hard work.”
He said the Scottish Government is “making life harder for working people” by increasing taxes on the wealthy.
NI contributions were already reduced in January, from 12 percent to 10 percent.
Now the Ministry of Finance has also drawn up a secret list to help boost revenues, which could include abolishing the ‘non-dom’ tax regime.
CLEAR PLAN FOR RETIREMENT
PENSION funds will have to reveal how much money they invest in British companies under new plans.
By 2027, ministers want savers to see detailed reports showing investment rates in UK companies, costs and returns.
Jeremy Hunt said: “These rules ensure savers can see how returns compare with others.”