The move was one of Liz Truss’ major campaign promises during the race for premier. Funding for health and welfare will now come from general taxation. According to the Ministry of Finance, the decision will save nearly 28 million residents of the kingdom about 330 pounds a year.
Most employees will see a tax cut in their November paychecks, but some will have to wait until December or even January – it depends on how the employer calculates employees’ salaries.
“Taxation has never worked for prosperity,” said Chancellor Kwasi Kwarteng. – To raise living standards for all, we must be uncompromising about the growth of our economy. Tax cuts are crucial to this.”
As a reminder, the national insurance tax increase was introduced to help the NHS recover from the coronavirus pandemic. The levy was expected to generate about 13 billion pounds a year.