Europe

Rise in National Insurance will be reversed within weeks, chancellor confirms

The increase in national insurance will be reversed from November 6, the Chancellor has confirmed.

Kwasi Kwarteng called the move a ‘tax cut for workers’.

In a tweet that appears to pre-empt Friday’s mini-budget, he said: ‘I can confirm that this year’s 1.25% point rise in National Insurance will be reversed on 6th November.

‘Its replacement – the Health and Social Care Levy planned for April 23 – will be cancelled.

‘A tax cut for workers. More cash for businesses to invest, employ and grow.’

Ahead of the fiscal event, he said: ‘Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy.

‘Cutting tax is crucial to this – and whether businesses reinvest freed-up cash into new machinery, lower prices on shop floors or increased staff wages, the reversal of the levy will help them grow, whilst also allowing the British public to keep more of what they earn.’

The 1.25 percentage point increase in national insurance was announced by former chancellor Rishi Sunak to help fund health and social care.

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