Hunt set to announce national insurance cut in pre-election Budget

Jeremy Hunt looks set to unveil a 2p cut to national insurance as he uses the Budget to woo voters ahead of this year’s general election.

The Chancellor is widely reported to have decided to cut national insurance rather than the more expensive option of a 2p reduction in income tax.

The move comes as he attempts to both revive the British economy and address an opinion poll deficit which suggests Rishi Sunak’s party is on course to be ousted at the election.

Downing Street would not be drawn on the prospect of a cut to national insurance, with the Prime Minister’s official spokesman saying: “I’m not going to get drawn on any of the Budget speculation.”

Treasury sources also refused to comment ahead of the Chancellor’s statement on Wednesday.

But The Times said the cut, worth £450 on average, would come in from April and the decision was taken after Mr Hunt decided against reducing income tax.

It said the decision was taken after the fiscal watchdog the Office for Budget Responsibility downgraded the amount of headroom available for delivering tax cuts or spending commitments within the Chancellor’s rule of having debt falling as a share of gross domestic product by 2029.

Experts warned that a 2p reduction in national insurance contributions would not by itself be enough to stop the tax burden reaching record levels by the end of this decade.