Rishi Sunak is considering plans to wipe out the National Insurance (NI) tax rise for lower paid workers.
The Chancellor could ease the pressure of the 1.25 per cent NI hike by raising the thresholds at which people start to pay the tax.
Depending on where he sets the threshold, it could allow him to declare that no worker below the median national wage of £27,500 a year will lose out financially from the NI increase – placing the burden instead on higher earners.
Such a move is being recommended across the political spectrum from the left-leaning Resolution Foundation to the centre-right Centre for Policy Studies (CPS) in recognition that it is too late for Boris Johnson and the Chancellor to cancel the NI rise – as Labour has demanded.
Read more in The Telegraph here.
Date Added: Friday 6th May 2022
