Over the coming days, 27 million people will benefit from our National Insurance tax cuts in their pay, easing pressures on people’s finances by putting more of their money back in their pockets.
- Because we stuck to the plan and more than halved inflation, we have been able to cut taxes for 27 million working people.
- That is why as pay cheques hit people’s bank accounts this weekend people will benefit from our cut to National Insurance – saving the average worker on £35,000 up to £450 a year which will ease pressures on people’s finances by putting more of their money back in their pockets.
- This tax cut delivers on our promise and rewards hard work making sure families have more money in their pockets. It would be reversed by Labour’s £28 billion spending spree which they cannot say how they would pay for because they do not have a plan and that means tax rises.
We are doing this by:
- Cutting National Insurance contributions for 27 million people in January 2024, putting £450 a year back in the pockets of hardworking people and easing financial pressures for people. On Saturday 6 January 2024, we cut the main rate of National Insurance contributions from twelve pence to ten pence. This delivers an annual average tax cut of £450 to 27 million workers, rewarding hard work across the country.
- A hard-working family with two earners on the average income will be £900 better off.
- A senior nurse with five years of experience will be better off by £600.
- The average police officer will be better off by over £630.
- A typical junior doctor will be better off by over £750.
- A typical self-employed plumber will be better off by over £410.
- The typical teacher will be better off by over £630
- Going further by cutting and simplifying tax for two million of the self-employed, supporting the country’s entrepreneurs who grow the economy. Later this year, we will abolish an entire class of NICs and cut the rate of the NICs top rate from nine per cent to eight per cent for the self-employed – with an average total saving of around £350 for someone earning £28,000 a year.
- The Autumn Statement cut business taxes permanently by £11 billion a year, the biggest business tax cut in modern British history. We promised to make full expensing permanent when the economic conditions allow and have now delivered that. Making full expensing permanent enables businesses to invest for less and offset investments against their tax bills, helping to grow the economy (HM Treasury, Autumn Statement 2023, 22 November 2023, link).
