Jeremy Hunt appears to be prioritizing a tax cut for an average of 27 million workers as he expands on the two percentage point national insurance drop that was implemented this year, amidst significant debate between income tax and national insurance cuts.
Treasury insiders claim the chancellor has leaned toward a national insurance cut because it applies across the UK – Scotland sets its own income tax thresholds – and is intended to “make work pay.” Many Conservative MPs want the chancellor to cut income tax by two percentage points in the March budget as a more eye-catching decision that benefits more voters, including pensioners.
Government officials have been downplaying a significant tax cut budget, claiming that different tax cuts, such as those pertaining to stamp duty or inheritance tax, have evaporated due to weakening economic forecasts, which has limited his reach.
