Budget 2024 live: Jeremy Hunt expected announce 2p National Insurance cut and unveil person tax cuts

Jeremy Hunt cutting national insurance will likely only prompt future tax increases after the next general election, an economist has warned.

Adam Corlett, principal economist at the Resolution Foundation think-tank, said there were “huge questions” over whether Britain can afford tax cuts given the current state of the economy. The UK is in a technical recession, with uncertainty over when interest rates currently punishing borrowers will fall.

Mr Corlett said: “While this is going to be a tax-cutting election year, it is sandwiched between significant past and future tax rises, with the budget likely to only add to the number of tax increases coming in after the election.”

Jeremy Hunt making an expected 2p cut to national insurance would amount to “fiddling while Rome burns”, former Brexit minister Lord Frost has warned.

The influential Tory peer told Sky News: “What I want to see is a Budget that deals with the problems the country has got and it does have lots and lots of problems, there is no doubt about that.

“But what I’d like to hear is the chancellor setting out a strategy, telling us that there is no future for this country as a high-tax, high-spend social democrat economy, coming up with a strategy that is going to focus on growth.

“The economy is not growing. Incomes per head are actually falling and people can feel it. We need something that deals with that and I’m afraid welcome as a 2p cut in National Insurance would be, it is really just sort of fiddling while Rome burns, I’m afraid.”

Harriett Baldwin, the Tory chair of the Treasury select committee, has told LBC she is “absolutely” on standby for a general election in May.

“I’ve been operating on the assumption that there’s a possibility it could be on 2 May, I think that’s the earliest date, and the prime minister – whose decision it is – has indicated it’s going to be in the second half of this year,” Ms Baldwin said.

“So I think the latest date’s going to be sort of mid-November, so some time in that window we will have a general election.”

But she continued: “I’ve been preparing to be ready for a May 2nd election”, adding that she is “absolutely” on standby.

With the country facing a lack of growth, stubbornly high interest rates, and national debt nearing 100 per cent, a tax cut isn’t in our best interest – but it suits the Conservative Party.

As the election approaches – it is only a matter of months now, whatever the speculation – Mr Hunt faces a dilemma familiar to many of his predecessors.

He can put the economy first; or he can be forced by the electoral cycle into putting the survival of his party first. All the signs are that he will be veering heavily towards a highly political Budget.

Jeremy Hunt is expected to unveil a 2p cut to national insurance in his Budget on Wednesday as he attempts to attract voters ahead of this year’s general election.

My colleague Alex Ross takes a look at how much people should be set to save if the tax cut is confirmed:

Sitting on a velvet grey sofa against a dark blue wall holding mugs, Rishi Sunak and businesswoman Akshata Murty are asked a number of questions about household jobs, such as, “Who is best at loading the dishwasher?” and, “Who is more likely to make the bed?”

The Conservative Party leader cut a quieter figure than his wife, who took the lead on answering questions in the interview with Grazia UK. He discussed his irritation at an unmade bed and jumped in to criticise her dishwasher stacking, while she admitted to having eaten meals in her bed when she was younger and conceded that her husband is the better cook.

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The chancellor will take to the despatch box at 12.30pm today to unveil his spring Budget.

We don’t know exactly what the chancellor will announce, but there is plenty of speculation in Westminster about personal tax cuts, tax rises in other areas and real terms cuts to public services.

This may or may not be the last financial statement offered by the government before a general election, so there it is expected to contain some giveaways in the hopes of winning voters round.

Here is a run-down of everything you can expect today:

Jeremy Hunt will make his spring Budget announcement this week, amid reports he could cut taxes for UK households in some fashion.

Amongst the rumoured measures is a reduction to income tax, another national insurance cut and even scrapping inheritance tax.

Here’s your guide to all the tax initiatives Mr Hunt has put in place so far:

Nothing oozes quiet confidence in your own political future than subbing your local constituency association £100,000 to keep it – and your career – going.

So it is with the current Conservative chancellor of the exchequer, Jeremy Hunt, who has used a small portion of his estimated net worth £14m net worth – £105,261, to be precise – to subsidise the activities of his “power base” (the South West Surrey Conservative Association) over the last five years.

Wealthy as he undoubtedly is – one of the few senior Tories to have made serious money from building up their own business – it has not previously been his habit to be so generous.

His personal donations to the association, which are all perfectly legal, stand in stark contrast to the total £4,447 he gave under the leadership of Theresa May and David Cameron, when his chances of hanging on to the seat were not in doubt.

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