Jeremy Hunt weighs up National Insurance cut for self employed white van men in hotly anticipated Autumn Statement
JEREMY Hunt is considering handing white van men a tax cut next week – as he finally takes the axe to our sky-high levies.
The Chancellor is poised to declare that now inflation is falling he can let Brits keep more of their own cash when he delivers his Autumn Statement next Wednesday.
The PM hopes that handing out personal tax cuts will deliver a sugar rush that will turn his political fortunes around.
A senior government source said: “We can’t promise any more – we have got to deliver.”
Speaking on a visit to Milton Keynes yesterday, Mr Hunt said: “It’s very important that we find a way to reduce the tax burden on working families. But there are no shortcuts.”
Britain’s tax burden is at its highest since the Second World War.
Mr Hunt is meeting with Rishi Sunak today and tomorrow to sign off on the final tax cuts.
One option being considered is cutting Class 4 National Insurance Contributions (NICs) for the self-employed.
Currently, plumbers, electricians and other self employed Brits get clobbered with a 9 per cent charge on profits between £12,570 and £50,270.
Anything above this incurs a 2 per cent levy.
Critics say the tax hammers the economy by creating a disincentive for Brits to work more, because higher profits just mean higher taxes.
One government insider suggested there was a “70 per cent chance” this tax will be cut next Wednesday.
Although no final decisions have been made.
The government is desperate to inject some growth into the UK’s sluggish economy.
In another boost to Britain’s toiling white van man, the hated ‘transit tax’ could be frozen.
The levy – known as the van benefit charge – was hiked by £72 last year to nearly £800 as inflation rocketed.
But No.11 is expected to freeze it this year after last year’s backlash.
Many Tory MPs are pinning their political hopes at the next election on tax cuts.
Iain Duncan Smith, the former leader of the Conservative party, said: “It is absolutely critical that taxes come down.”
Brits who live near new pylons and electricity substations could receive up to £10,000 off their bills over a decade under plans being announced by the Chancellor.