2p it is, as the Chancellor cuts National Insurance

The Chancellor has announced on Wednesday in his Spring Budget that National Insurance will be cut by 2p from 6 April.

Employees will then tax their staff at 8% from 10% and Jeremy Hunt said that this mean the average company will end up with an extra £450 a year.

Speaking to MPs in the House of Commons during his Spring Budget, Hunt said that 27 million people will see an average of £900 per year extra and for the self-employed some 2 million will see an extra £650.

The Chancellor said that the changes “make our system simpler and fairer, and will “grow our economy by rewarding work.”

There was cheers for Hunt as he spoke of lower taxes, he told MPs, “If we want to encourage hard work, we should let people keep as much of their own money as possible.

“Conservatives look around the world at economies in North America and Asia and notice that countries with lower taxes generally have higher growth. Economists argue about cause and correlation. But we know that lower taxed economies have more energy, more dynamism and more innovation. We know that is our future too.”

Hunt ended his Budget speech and told MPs, the government are aiming to cut national insurance even further, “when it can be achieved without increasing borrowing and when it can be delivered without compromising high-quality public services.”