Kwasi Kwarteng: UK Chancellor Kwasi Kwarteng announces reversal of National Insurance hike from November, more details inside

On Thursday, UK Chancellor Kwasi Kwarteng declared that they would overturn the National Insurance increase from November to April.

Beginning on November 6 will eliminate the 1.25 percentage point increase in National Insurance contributions.

“Taxing our way to wealth has never been effective,” according to Kwarteng. They must be unrepentant about expanding the economy if they want to improve living conditions for everyone.

He emphasized that the tax reduction would result in an additional
£330 per year for 28 million people in the UK in 2023–2024 on average.

Next year, it was supposed to become a Health and Social Care Levy. In two stages, the government will reduce the tax hike.

As a result, the temporary 1.25 percentage point rise will no longer apply for the remainder of the
2022–2023 tax year. National Insurance rates will be reduced starting on November
6, 2022.

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As originally anticipated, the 1.25 percent Health and Social Care Levy will not be implemented as a separate tax on April 6, 2023.

The Government claims that general taxes will fund the healthcare system and the NHS.

In his mini-Budget on Friday, Kwarteng was also anticipated to announce more tax cuts, such as abandoning the proposed hike in corporation tax from 19 to 25 percent in 2019.

They have emphasized that future generations will ultimately pay for current issues. Labor is charging the government a risky bet on the country’s finances.

However, the new Prime Minister, Liz Truss, is adamant that increasing money for public services depends on her drive for economic growth.

Related FAQs:

From when will National Insurance rates be reduced?
National Insurance rates will be reduced starting November 6, 2022.

What is Liz Truss’ tax policy?
Liz Truss is adamant that increasing money for public services depends on her drive for economic growth.

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