Cuts to national insurance reportedly being considered by the Chancellor in tomorrow's Budget could result in tens of thousands of people being driven into relative poverty, think tank warns.
The New Economics Foundation (NEF) has said that a 1p cut in national insurance would cost the Government £4.8bn and would see those on the highest incomes save £424 a year, while those on the lowest would save just £34.
The NEF analysis also showed that this cut would bring 55,000 more people into relative poverty.
Sam Tims, senior economist at the NEF, said: ‘Everywhere you look, from our schools to hospitals to high streets, our country is falling apart at the seams while millions of people struggle to get by. Yet at the same time our chancellor is pushing for tax cuts that the country does not want, and that will benefit those who already have the most.
‘Not only will this reduce Government income in the immediate future, but it will also worsen inequality making us all poorer and harming the country’s prospects.’
