Jeremy Hunt cut personal taxes to their lowest level for almost 50 years in a highly political Budget ahead of this year’s general election.
The Chancellor confirmed a 2p cut in national insurance for employees and the self-employed as the centrepiece of a Budget which sought to persuade voters to stick with the Conservatives rather than give Sir Keir Starmer the keys to No 10.
Mr Hunt also offered more help with child benefits to parents earning more than £50,000 and cut the top rate of capital gains tax on property sales – arguing that reducing it from 28% to 24% would bring in more money because of increased activity.
But as he insisted that those with the “broadest shoulders” would pay more, he committed to scrapping the non-dom status for wealthy foreigners, putting the £2.7 billion a year raised as a result towards tax cuts.
The national insurance cut from April will be worth an average £450 for workers and £350 for the self-employed.
When combined with a previous reduction which came into effect in January it will be worth £900 for 27 million workers and £650 for two million self-employed.
Mr Hunt said: “That means the average earner in the UK now has the lowest effective personal tax rate since 1975 and one that is lower than in America, France, Germany or any G7 country.”
But the changes come against a backdrop of frozen thresholds which will see more people dragged into tax or higher brackets as their earnings rise.
Related: Budget at a glance: What measures did the Government announce?