Biggest tax cuts in 35 years as Tories prepare for election fight

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Households will still pay more as extra three million workers dragged into 40pc bracket.

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23 Nov 2023

Jeremy Hunt has unveiled the biggest tax cuts in 35 years, leading Conservative MPs to cheer a “good start” and call for more before the general election.

National Insurance for workers was reduced from 12 per cent to 10 per cent, with 27 million people benefitting. Those who earn the average salary for the UK will save around £450 a year.

Companies saw an investment tax incentive known as “full expensing” made permanent and had some business rates frozen as the Chancellor targeted his measures at boosting economic growth.

But the tax burden is still forecast to become bigger than at any time since after the Second World War, with Wednesday’s measures dwarfed by the impact of past stealth tax raids.

There was good news for older Britons, with the state pension rising 8.5 per cent. Yet overall living standards are still set to drop more than any time since 1950.

Tory MPs welcomed the tax cuts, but some went public with calls to quicken the pace and were