London Daily

Focus on the big picture.

Chancellor Contemplates Additional National Insurance Cut to Alleviate Pressure on Rishi Sunak

Chancellor Jeremy Hunt is considering another cut to national insurance to relieve pressure on Prime Minister Rishi Sunak and move past internal Conservative unrest.
The government hopes to alleviate tension over Sunak's immigration policies and leadership disputes by focusing on tax cuts for their election strategy. As the budget approaches in March, the Treasury is assessing potential tax cuts, notably to stimulate work and economic growth.

Last year, national insurance was cut from 12% to 10%, saving the average worker £450 but costing the Treasury £9 billion annually.

On Tuesday, Hunt will review preliminary economic forecasts to determine the feasibility of additional tax cuts. Reducing employee national insurance is a particular focus, aiming to encourage job growth without affecting pensioners protected by the state pension triple lock.

The Chancellor also contemplates extending child benefits to higher-income families, potentially appeasing voters in vulnerable Conservative areas. The plan may change the current income thresholds, which start reducing benefits for earners at £50,000, and remove them entirely for those making £60,000.

Recent polls indicate a significant lead for Labour, causing concern among Sunak's supporters who face ongoing party infighting. Some allies urge firm action against party members undermining the leader, suggesting removing their party membership to deter such behavior.

Sunak's camp is also responding to threats of a continued campaign against him by a faction that prefers former Prime Minister Boris Johnson's leadership.

They are particularly interested in identifying the financiers behind polls predicting a Labour victory, which critics of Sunak's leadership have used to argue for a rightward shift.

Despite the possibility of losing upcoming byelections and facing tough local elections, the budget presents an opportunity for Sunak to present a strong fiscal plan, encouraging voters with strategic tax cuts and economic incentives.

However, Hunt is not keen on revising the government's fiscal rules before the election, even while handling the challenge of Labour's significant investment commitments in their green agenda.

Related Articles

London Daily
Theresa May Admits Mistakes Over Immigration Policies
Nicki Minaj's Manchester Concert Canceled After Amsterdam Arrest
UK Conservative Party Proposes Mandatory National Service at 18
Kate Middleton's Public Absence Throughout 2024
Asylum Seekers Arriving In UK by Sea Exceed 10,000 This Year
UK Criticizes ICJ Order on Israel's Rafah Assault
Ukraine's Fight Against Corruption Gains Ground Amid War
Czech President Petr Pavel Injured in Motorcycle Accident
Record Number of Abortions in England and Wales
Paul McCartney Honours Bruce Springsteen at Ivor Novello Awards
US and UK to Reject ICJ Ruling on Israel's Rafah Offensive
World Court Orders Immediate Halt to Israeli Offensive in Gaza
Understanding FLiRT COVID Variants and Their Impact
Baltic NATO Members to Construct 'Drone Wall'
Global Life Expectancy Dropped By 2 Years Due To COVID-19
Macron Halts New Caledonia Voting Reform After Riots
Rishi Sunak Shelves Rwanda and Smoking Policies Ahead of Election
US Refuses World Court Jurisdiction
China Conducts Surprise Military Drills Around Taiwan
Grim Polls Predict Major Loss for PM Rishi Sunak
Rishi Sunak's Campaign for UK Election: Key Issues Highlighted
German Property Crisis Worsens as Foreign Investment Declines
Princess of Wales's Taskforce Calls for Business Investment in Early Childhood
Campaign Groups Condemn UK Report on Protests
Former Royal Marine Charged with Espionage Found Dead
Australian PM Calls for Julian Assange's Freedom
ICC Seeks Arrest Warrants for Israeli and Hamas Leaders
UK's Infected Blood Scandal: Conclusion Nears After Seven Years
Julian Assange Granted Right to Challenge US Extradition
Congo Army Thwarts Attempted Coup Involving Americans and a British Citizen
Ireland's Homeless Gain Voting Rights
Blinken orders crackdown on Israel-Hamas leaks
Julian Assange Faces US Extradition: Key Facts
Jacob Zuma Takes Campaign to ANC Stronghold Soweto
Attempted Assassination of Slovakia PM Robert Fico: Investigation Ongoing
What Happens If an Iranian President Dies in Office?
Spain Recalls Ambassador After Argentina President's Remarks
Rishi Sunak Faces Cabinet Backlash Over Proposed Changes to Foreign Student Visas
Rwanda Denies Entry to Human Rights Researcher
Iranian President Ebrahim Raisi Reportedly Killed in Helicopter Crash
Blue Origin Resumes Space Tourism with 90-Year-Old Ed Dwight
Rishi Sunak and Wife Akshata Murty Wealthier Than King Charles
New Dutch Government Drives Wedge Through EU Liberals
Iranian President Raisi Missing After Helicopter Goes Down
Freemasons and ‘Global War Party’ Accused of Conspiring Against Georgia
Poland Supports Rolls-Royce's Nuclear Power Plant Initiative
European Ports Overflow with Unsold Electric Vehicles
Esprit Files for Bankruptcy in Europe, Putting Hundreds of Jobs at Risk
Chevron Halts North Sea Drilling Amid Rising Tax Burden
Jeremy Hunt Accused of Exaggerating Conservatives' Economic Record