National insurance growth will reverse in November, Chancellor announces
Growth in national insurance will reverse in November, the chancellor has confirmed.
The 1.25% NI increase was introduced in April under former chancellor Rishi Sunak, but new prime minister Liz Truss vowed to reverse the move during the summer Tory leadership race.
New Chancellor Quasi Quarteng called the plan to reverse the increase a “tax cut for workers”.
In a tweet that appears to pre-empt Friday’s mini-budget, he said: “I can confirm that this year’s 1.25% point growth in National Insurance will reverse on November 6.
I can confirm that the 1.25% growth in National Insurance this year will reverse on November 6.
Its replacement – the health and social care levy planned for April 23 – will be canceled.
Tax cuts for workers. More cash for businesses to invest, employ and grow. pic.twitter.com/qssnBaNywK
— Kwasi Quarteng (@KwasiKwarteng) 22 September 2022
“Its replacement – the health and social care levy planned for April 23 – will be cancelled.
“Tax cut for workers. Investment, jobs and more cash for businesses to grow,” he said.
Chancellor Quasi Quarteng confirmed that the national insurance hike, which was implemented in April, would be reversed from 6 November.
Ahead of his mini-budget on Friday, he said: “Taxing our way to prosperity has never worked. To raise the standard of living of all, we should not be apologetic about the growth of our economy.
“Tax cuts are key to this – and whether businesses reinvest free cash into new machinery, lower prices on shop floors or increase employees’ wages, reversing the levy will help them grow, while allowing the British public more Will also be allowed to keep what they earn.”