23 Nov 2023
The changes to national insurance announced yesterday by Chancellor Jeremy Hunt in his 2023 Autumn Statement will help to 'ease the burden on strivers up and down the country', the Federation of Small Businesses (FSB) has said.
Mr Hunt used his Autumn Statement speech to slash the main rate of employee national insurance (NI) from 12% to 10% for 27 million workers across the UK. This is set to take effect from 6 January 2024. The Chancellor said that, for the average employee earning £35,400 per year, the change amounts to a £450 annual tax cut.
He also abolished Class 2 national insurance contributions (NICs) and cut Class 4 NICs from 9% to 8%, effective from April 2024.
Commenting on the measures, Tina McKenzie, Policy Chair at the FSB, said: 'The Chancellor's decision to reduce the rate of self-employed NI and abolish the Class 2 element is extremely welcome, easing the burden on strivers up and down the country.
'The FSB has long campaigned for the abolition of the Class 2 element of NI and the reduction of Class 4, and we are therefore pleased that the Chancellor has acted.'