From Morningstar:

The British government announced additional National Insurance cuts, reducing the rate for employees and self-employed workers from 10% to 8%. This will provide an extra £450 and £350 annually to employees and the self-employed, respectively. When combined with previous reductions, 27 million workers will receive an average tax cut of £900 and £650 each.

The Autumn statement in 2024 saw a reduction in employee NI contributions from 12% to 10%, followed by a further cut to 8% in the Spring Budget. However, not everyone will benefit equally from these cuts, with lower earners saving less than £50 annually, while higher earners may feel short-changed.

Cutting National Insurance is seen as a strategic move as it benefits fewer people compared to cutting income tax. This decision reflects a balancing act for the Chancellor, balancing the demands of various interest groups. Despite criticisms, the government maintains that the current tax rates are the lowest since 1975.



Read more at Morningstar: Budget 2024: Surprise-Lite Chancellor Cuts NI Again