Jeremy Hunt immediately signalled a future Tory authorities might look to abolish National Insurance fully.
The Chancellor stated throughout his Budget handle that “the way we tax people’s income is particularly unfair”.
“If you get your income from having a job, you pay two types of tax – National Insurance contributions and income tax – if you get it from other sources you pay only one,” he stated.
“This double taxation of work is unfair. The result is a complicated system that penalises work instead of encouraging it.”
Mr Hunt confirmed that National Insurance can be lower by 2p from April in a transfer that may save the common employee £450. But he signalled he needed to go additional sooner or later to create a “simpler, fairer” tax system.
He stated: “Because Conservatives believe that making work pay is of the most fundamental importance, because we believe that the double taxation of work is unfair, our long-term ambition is to end this unfairness.
“When it is responsible, when it can be achieved without increasing borrowing and when it can be delivered without compromising high quality public services, we will continue to cut National Insurance as we have done today so we truly make work pay.”
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