Budget 2023: Government cuts National Insurance from 12% to 10%

Chancellor Jeremy Hunt has announced a 2 percentage point cut to the the main rate for employee National Insurance from 12% to 10%.

Speaking during today's Budget, Hunt said that 27 million people would benefit from the reduction, which is worth £450 for someone on average earnings.

The change will come into force from the 6th of January.

Tax cuts were widely rumoured after infation dropped to a two-year low of 4.6% last month, meaning the Government has reached its target of halving inflation from its 10.7% starting point.

Hunt also announced tax cuts for self-employed people worth £350 per year.

The government is abolishing Class 2 National Insurance, which will save workers £192 per year, and is reducing Class 4 National Insurance from 9% of earnings to 8%.

The self-employed tax changes will come into force from April next year and will benefit nearly two million self-employed people, Hunt says.