Tax changes could point to a policy shift ahead of the election
The chancellor’s recent adjustments will be welcomed by those of working age on average and somewhat above-average earnings
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Narrated by Paul Johnson
The two big announcements from last year’s budget and autumn statement are just starting to take effect. They tell us rather a lot about how this year’s election campaign may pan out. They also suggest something rather counter to the accepted narrative about where this government’s priorities might lie.
No doubt you’ll be aware that the national insurance cut, announced in November, came into effect on Saturday. The 2p cut in the employee rate will benefit the average earner on £35,000 a year by about £450. Anyone earning £52,250 or more will gain £754. Gains are less for lower earners.
All very welcome. The less welcome news, of course, is that we are in the middle of a much bigger income tax increase. The
