- Rupert Matthews has welcomed a tax cut for 2,090,000 people in the East Midlands thanks to the long-term decisions taken by the Conservative Government at the Autumn Statement for Growth.
- From today (6 January 2024) National Insurance Contributions for 27 million working people will be cut from twelve per cent to ten per cent, delivering a tax cut of £450 for the average worker earning £35,000.
- This means people will have more money in their pockets, helping to grow the economy and reward hard work.
Rupert Matthews has welcomed a tax cut for 2.1 million people in East Midlands, saving workers an average of £450 a year.
Having met their target to halve inflation, the Conservative Government are now able to cut taxes.
From today (6 January 2024) employee National Insurance contributions will be cut from twelve per cent to ten per cent, delivering a tax cut of £450 for the average worker earning £35,000.
The Conservative Government will also cut National Insurance for the Self Employed, delivering a total average saving of £340 a year which will come into force later this year.
Today’s tax cut means a senior nurse with five years of experience will receive an annual gain of £600; a typical police officer will receive an annual gain of over £630; a typical junior doctor will receive an annual gain of over £750 and a hard-working family with two earners on the average income will be £900 better off a year.
This tax cut is only possible because of the long-term, difficult decisions the Conservative Government took to get inflation falling and strengthen the economy.
Commenting, Rupert Matthews said:
“The Prime Minister made a promise to people across the East Midlands that taxes would be cut when inflation was falling and that is what this Conservative Government is delivering today.
“2,090,000 people across the East Midlands will have their taxes cut from today, thanks to the Conservative Government’s long-term decisions for a stronger economy.
“This means people get to keep more of their hard-earned money, ensuring work always pays under a Conservative Government.”
Commenting, Chancellor of the Exchequer Jeremy Hunt MP said:
“With inflation halved, we’ve turned a corner and are cutting taxes – starting with today’s record cut to National Insurance worth nearly £1,000 for a household.
“From nurses and brickies, to cleaners and butchers, 27 million hard-working Brits will have a little more cash in their pockets.”
Notes:
- From January 2024 Employee National Insurance will be cut by two pence delivering a tax cut of £450 for the average worker. Employee National Insurance will be cut from 12 per cent to 10 per cent, delivering the benefit of a tax cut quickly for 27 million employees. This tax cut means the average worker will save £450 a year (HM Treasury, Autumn Statement 2023, 22 November 2023, link).
- From April 2024 National Insurance for the Self-Employed will also be cut with an average total saving of around £340. The rate of Class 4 NICs will be cut by one pence from nine per cent to eight per cent. From 6th April 2024, the weekly Class 2 NICs payment effectively be abolished. No one will be required to pay Class 2 NICs, but we will maintain access to contributory benefits, and those currently paying voluntarily will still be able to do so (HM Treasury, Autumn Statement 2023, 22 November 2023, link).
Case studies
- A senior nurse with five years of experience on £42,618 will receive an annual gain of £600.
- An average full-time nurse on £38,900 will receive an annual gain of over £520.
- An average police officer on £44,300 will receive an annual gain of over £630.
- A typical junior doctor on £63,000 will receive an annual gain of over £750.
- A cleaner working night shifts on £21,000 will receive a gain of £170.
- A typical self-employed plumber on £34,400 will receive an annual gain of £410.
- An average teacher on £44,300 will receive an annual gain of over £630.
- A hard-working family with two earners on the average earnings of £35,404 will be £900 better off.
