UK GOVERNMENT ANNOUNCES 10 BILLION-POUND TAX CUT FOR WORKERS

British finance minister Jeremy Hunt has unveiled a £10 billion tax cut aimed at benefiting 27 million workers, marking the second such reduction in less than four months ahead of an anticipated national election later this year. The tax cut targets social security contributions, known as National Insurance Contributions, with a 2 percentage point reduction for both employees and the self-employed. The move is intended to incentivize individuals to return to work and foster a high-wage, high-skill economy.

Effective from April, the reduction would translate to approximately £450 per year for employees and £350 for self-employed individuals. Hunt emphasized the need for a simpler and fairer tax system that incentivizes work during his annual budget speech in parliament. This latest tax cut follows a previous announcement in November, where Hunt introduced a 2 percentage point reduction for employees and a 1 percentage point reduction for self-employed workers. Combined, these two tax cuts are estimated to provide an average benefit of £900 to the average worker.

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