Jeremy Hunt Cuts National Insurance And Abolishes Non-Dom Tax Breaks In Spring Budget

Chancellor Jeremy Hunt has announced a cut to National Insurance and abolished non-dom tax status in the Spring Budget.

Hunt told the House of Commons 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. 

“The way we tax people’s income is particularly unfair,” he said.

“If we are to build a high wage, high skill economy not dependent on migration…If we want to encourage people not in work to come back to work…We need a simpler, fairer tax system that makes work pay.”

The Chancellor has been under pressure from backbench Tory MPs to deliver tax cuts, as the government looks for ways to try to convince voters not to abandon the Conservatives in the general election. 

Many Tory MPs believe it is the government’s last chance to shift the dial, with a poll published by Ipsos UK on Monday suggesting that only 20 per cent of the public plan to vote Tory, the lowest Ipsos score ever recorded by the party.

The government will also abolish the current tax system for non-doms, which had been a long-trailed proposal by Labour that would have been central to their economic plans if they get into government at the next general election.

From April 2025, new arrivals to the UK will now not be required to pay any tax on foreign income and gains for their first four years of UK residency, but after four years, they will pay the same tax as other UK residents if they stay in the country. 

“Overall abolishing non-dom status will raise £2.7 bn a year by the end of