Chancellor Jeremy Hunt delivered his Spring Budget in the House of Commons this afternoon, setting out his latest plans for taxation and spending.
Mr Hunt announced a second cut to the rate of National Insurance, after the rate was cut from 12 per cent to 10 per cent back in January.
The chancellor announced another cut of 2 per cent, which could save the average worker another £450 a year. The chancellor appears to have landed on a cut to National Insurance instead of a cut to the basic rate of Income Tax.
It was widely reported that Downing Street's favoured option was the latter, which would be a more expensive move but better understood by many voters ahead of this year's general election. READ MORE: Four things to look for in Spring Budget that could impact your finances - including another National Insurance cut READ MORE: All the Spring Budget 2024 announcements that could affect homeowners and first-time buyers Mr Hunt was said to have taken the decision after the Office for Budget Responsibility (OBR) downgraded the amount of fiscal headroom available for delivering tax cuts or spending commitments, within the Chancellor’s self-imposed rule of having debt falling as a share of gross domestic product (GDP) by 2029.