Chancellor Kwasi Kwarteng confirmed the national insurance increase which came into effect in April will be reversed from November 6. Ahead of his mini-budget on Friday, 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.
