From Morningstar:

Chancellor Jeremy Hunt is set to announce a 2p cut to National Insurance in his pre-election Budget to boost growth and prosperity. The move is expected to save the average worker £450 a year. Critics argue an income tax cut would be more beneficial, as polls show Conservative support at a 46-year low. Hunt plans to set electoral dividing lines with Labour ahead of the general election, highlighting the Tories’ economic progress. Labour accuses the Conservatives of economic failure, warning that tax cuts may be cancelled out by freezes on tax thresholds. Experts suggest a 2p NI reduction alone won’t prevent record-high tax levels by 2029. Additional tax rises on vapes, short-term holiday lets, and non-dom tax relief could be implemented to fund the tax cuts. Amidst predictions of an impending election, spending cuts may be necessary to fund giveaways post-election, potentially affecting public services negatively. Hunt defends austerity, attributing the government’s ability to support people during the pandemic to previously implemented deficit reductions.



Read more at Morningstar: Budget 2024: Will it be NI or Will it be Income Tax?