Hunt cuts national insurance in pre-election Budget but tax burden still rising

Jeremy Hunt cut national insurance in a pre-election giveaway, but living standards remain squeezed and millions of people face being dragged into higher tax bands.

The Chancellor said the 2p reduction in national insurance for employees and the self-employed would reduce levels of personal taxation to an almost 50-year low.

But the UK is still on course to have an overall tax burden which is rising “near to a post-war high”, the budget watchdog said.

Almost seven million people will either be dragged into income tax for the first time or shifted into higher bands by 2028/29 as a result of the decision not to raise thresholds in line with inflation.

The Office for Responsibility (OBR) said this results in an extra £41.1 billion