London Daily

Focus on the big picture.
Sunday, Oct 04, 2026

Chancellor Expected to Reduce NI and Business Taxes in Upcoming Statement

The Chancellor plans to reduce National Insurance (NI) contributions for numerous workers in the upcoming Autumn Statement. Jeremy Hunt's mini-budget will likely include business tax reductions and stricter rules for benefit recipients.
The Autumn Statement is also set to promote a £20bn annual increase in business investments to stimulate growth. Tax levels in the UK have reached a 70-year record high, according to the Institute for Fiscal Studies (IFS).

Labour criticizes Mr. Hunt for being unable to improve the Conservative Party's economic track record, while many Conservative MPs call for tax relief.

Dame Priti Patel remarked on the significance of the moment, noting past Conservative efforts to decrease taxes. However, some acknowledge tax increases without corresponding improvements in public services. Many economists attribute these trends to Covid costs and national debt interest payments.

The Autumn Statement, part of Rishi Sunak's strategy to bolster the Conservative Party, unveils a minimum wage rise to £11.44 and extends to 21 and 22-year-olds. Additionally, a £2.5bn benefits reform is in the pipeline for those with long-term health issues or unemployment.

New rules will mandate work placements for long-term benefit claimants or risk losing support, and tougher penalties for those not actively job searching are proposed.

The Chancellor plans to extend full expensing tax breaks for businesses until 2028-29, encouraging companies to invest more.

While the future of NI cuts remains uncertain, the current rates are 12% on earnings between £12,570 to £50,268, and 2% on earnings above that, with no NI for those earning under £12,570.

Mr. Hunt will stress the importance of a dynamic economy fueled by the British public rather than government intervention. The government intends to stimulate business growth by eliminating regulatory barriers, attracting foreign investment, and cutting business taxes.

Labour responds, labeling the Conservatives as the "high tax party" due to their inability to foster economic growth, leaving citizens financially strained with increased living costs.

In the lead-up to the speech, speculation about potential tax reductions has been rife. Mr. Hunt had previously downplayed these prospects until inflation was managed.

However, following a recent decrease in inflation, there's an increased push for economic growth, including potential tax cuts pledged to be done responsibly. Prime Minister Sunak emphasized tax reduction feasibility in light of achieving his goal to halve inflation.
Newsletter

Related Articles

0:00
0:00
Close
UK Police Release Six Iranian Nationals on Bail After RAF Fairford Security Alert
UK Business Confidence Falls as Energy Costs and Tax Uncertainty Rise
Cornwall Insight Warns UK Energy Bills Could Rise 16% in January
UK Introduces Zero VAT on Household Electricity Bills
UK 30-Year Gilt Yield Hits 6% as Bond Market Pressures Intensify
UK Introduces Stricter Subcontractor Checks and Expanded Trade Union Access
Green Party Proposes Three-Year Emergency Freeze on Private Rent Increases
UK Treasury Committee Seeks Tax Clarification Over Manchester City Investigation
Royal Marines Deploy to Faroe Islands for Northern European Security Exercise
UK Business Confidence Weakens as High Costs Delay Investment
UK GDP Growth Revised Up to 0.5% in Second Quarter
Bank of England Warns of Financial Stability Risks From Autonomous AI
UK Expands Early Prisoner Release Scheme to Ease Overcrowding
UK Records Worst Bluetongue Outbreak on Record Across Livestock Farms
UK Government Faces Shrinking Fiscal Headroom Ahead of October 28 Budget
UK 30-Year Gilt Yield Reaches 6% as Energy Shock Drives Borrowing Costs Higher
Church of England to Apologize for Role in Historical Forced Adoptions
UK Defence Ministry Investigates Historical Use of RAF Bases by Jeffrey Epstein
Scottish Housing Completions Fall to 11-Year Low
Welsh First Minister Calls for Expanded Devolution Settlement
UK Pledges £50 Million to Expand Domestic Military Drone Capabilities
UK Opens First Commercial Geothermal Plant in Cornwall
Green Party Wins Gorton and Denton By-Election as Labour Falls to Third
Prime Minister Andy Burnham Opens Review of UK-EU Relationship
UK Inflation Rises to 3.1%, Adding Pressure on Household Finances
UK Removes VAT From Domestic Electricity Bills to Ease Winter Energy Costs
Counterterrorism Police Arrest Sixth Suspect Over RAF Fairford Incident
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Chancellor John Healey Faces Tax and Pension Scrutiny Ahead of Autumn Budget
Metropolitan Police Apologise for Accidental Disclosure in High-Profile Investigation
UK Universities Report Record International Enrolment as Housing Pressure Grows
UK Logistics Firms Monitor Rhine Disruption as Low Water Threatens European Supply Chains
UK Food Industry Warns Inflation Could Approach 7%
UK Introduces Vaping Duty and Mandatory Retail Stamps
Scotland Raises Property Taxes and Expands Child Payment in Annual Budget
Greggs Plans Four Factory Closures With 740 Jobs at Risk
OECD Raises UK 2026 Growth Forecast to 1.1%
UK Inflation Rises to 3.1% as Bank of England Faces Rate Debate
Andy Burnham Criticises Brexit and Says Rejoining EU Single Market Remains an Option
UK Imposes New Sanctions on Russian Military Networks and Propagandists
UK Launches Nationwide Early-Release Prison Scheme
Andy Burnham Says Security Services See Signs of Iranian Involvement in RAF Fairford Incident
Manchester City Found Guilty on Premier League Financial Charges After Independent Investigation
Scottish Court to Rule on Bid to Force No-Confidence Vote Against Aberdeen Council Co-Leader
UK Bans Extra Charges for Seating Children Under 12 Beside Accompanying Adults
UK Introduces Vaping Duty and New Licensing Requirements
Greggs to Close Four UK Factories and Cut 740 Jobs
Hundreds of Prisoners Released Early as England and Wales Prisons Reach 98% Capacity
UK Unveils New Russia Sanctions Targeting War Funding and Shadow Fleet
Burnham Says There Are Strong Indications of Iranian Involvement in RAF Fairford Security Breach
×