Jeremy Hunt cuts National Insurance and extends child benefit in Budget

Chancellor Jeremy Hunt cuts workers’ National Insurance by another 2p in the Budget, meaning it falls from 10% to 8%
He also increases the child benefit threshold from £50,000 to £60,000
Hunt says the National Insurance cut, to begin next month, is worth £450 a year for the average worker
It follows a 2p cut in last year’s Autumn Statement – but there is no change to income tax
New official forecasts say the government will collect 37.1p of every pound generated in the economy in 2028/29 – the highest level in 80 years
Labour leader Keir Starmer calls the Budget a “last desperate act” with people paying “more and more for less and less”
Hunt also announces a six-month extension to the Household Support Fund and freezes to alcohol and fuel duty
He increases the VAT threshold for small businesses to £90,000, and announces new taxes on vapes and higher taxes for business class flights
He says he’s “abolishing” the “non-dom” tax system, but new arrivals to the UK will still not pay taxes on foreign income for four years