Insights

Chancellor hopes national insurance cut will put voters in a positive mood

24 November 2023

This week Jeremy Hunt attempted to lighten the mood for voters by reducing National Insurance. The early introduction of this tax cut raises the possibility of an election in early 2024 as the Conservatives weigh up whether this is long enough for workers to feel the benefit against the potential for a rate hike if inflation stays high. The Office for Budget Responsibility’s assessment of the outlook was lukewarm at best. It expects low growth this year and next, but says inflation will take until the second quarter of 2025 to return to target.