Is Jeremy Hunt Actually Cutting Taxes?

Jeremy Hunt presented his much anticipated Spring Budget to the House of Commons on Wednesday, with its flagship policy of cutting a further two pence from National Insurance an apparent demonstration of his ability to cut taxes.

But the Budget also contained a number of new taxes, such as a levy on vapes, and an end to tax reliefs on holiday homes and non-domiciled citizens, plus the continued income tax threshold freeze means many more people will be pulled into a higher tax bracket as wages move with inflation. 

Speaking in the House of Commons on Wednesday afternoon, Hunt said that his plans deliver “more investment, more jobs, better public services and lower taxes”.  

But have taxes really been cut when various measures are balanced against one another? Not according to economic analysts digesting today's Budget, who have indicated that the overall level of tax will continue to increase. 

A Budget with a plan to grow the economy, for better public services, and to make work pay. pic.twitter.com/PTOGrv3q2u

Hunt told Parliament that from 6 April, employees’ National Insurance will be cut by 2p, from 10 per cent to 8 per cent, following a previous 2p cut in the Autumn Statement. Self-employed national insurance will be cut from 8 per cent to 6 per cent. Hunt said this would mean an additional £450 a year for the average employee or £350 for someone self-employed. 

He has been under pressure from Conservative backbenchers to cut taxes ahead of the general election, which must be called this year.

Following Hunt's announcement, Richard Hughes, the chair of the Office for Budget Responsibility told reporters that although the tax cuts announced in the Budget “help to reduce the overall tax to GDP ratio by around half a