Britain’s embattled Conservative government on Wednesday announced a fresh tax cut for millions of workers to woo voters before a general election expected this year. In a budget update, finance minister Jeremy Hunt said the government would cut national insurance — a payrolls tax paid by employees and employers — by two percentage points from April, matching action he took in November.
It remains to be seen whether the latest move, reportedly worth a total of £10 billion ($12.7 billion), would win over voters.
The right-wing Conservatives, led by Prime Minister Rishi Sunak, have been in power since 2010 but were well behind the main opposition Labour party in opinion polls ahead of Wednesday’s budget.
Analysts said Hunt’s latest tax cut was far from being a huge giveaway, as elevated inflation forces up repayments on state borrowing, undermining the government’s ability to stimulate the recession-mired UK economy.
Credit: rfi
