Jeremy Hunt’s election Budget gamble: 2p off national insurance – but no cut in income tax

Jeremy Hunt is set to pile further pressure on Britain’s creaking public services with a multibillion-pound tax cut aimed at winning over disgruntled voters – but is expected to stop short of targeting income tax after being warned his plans were unaffordable.

The chancellor is expected to offer millions of workers a 2p cut to their national insurance in Wednesday’s Budget, saving the average earner £450 a year. Combined with the cut handed out in November, the average earner will now have been handed an annual tax cut worth £900.

In what could be seen as a big election gamble for Rishi Sunak, an income tax cut is now thought to be less likely after Mr Hunt was forced to rip up his plans last week when the spending watchdog, the Office for Budget Responsibility, warned they were unaffordable.