Britain’s government has rolled out a fresh bid to turn the tide in the polls, just months ahead of the general election expected later this year. In a spring Budget speech, Chancellor Jeremy Hunt announced new tax cuts aimed at persuading a slice of voters still feeling the bite of higher living costs. He argued in Parliament that in a free society, money belongs to the people, not the state, and to spur hard work, individuals should keep as much of their earnings as possible.
Hunt confirmed a two-point cut in National Insurance for 27 million employees and an additional two million self-employed people. The changes, which will take effect from next April, reduce employee NI to 8% and employer contributions to 6% for the self-employed. The measure is valued at around 10 billion pounds (about 11.6 billion euros) and follows a two-point reduction in the same tax announced late last year. Hunt said the move halves the tax bite on National Insurance within six months without increasing debt or public service spending, promising an annual saving of roughly 900 pounds per worker.
Both Hunt and Prime Minister Rishi Sunak aim to offset this spending with new revenue-raising measures and a plan to trim public sector budgets. The chancellor outlined further investments in technology to lift productivity in healthcare and policing, pointing to fewer bureaucratic tasks for frontline professionals and, over the long term, millions of pounds saved for the public purse.
Attacks on the Labour Party
The Conservatives have pressed their budget plan as a contrast to Labour, which remains ahead in the polls by a substantial margin as Sunak seeks to win back voters. Hunt presented the government as efficient in management and cautious with public spending, arguing Labour would shift resources toward higher public investment funded by taxes on working people. “This is the difference with the opposition: their plans destroy jobs, reduce opportunities, and threaten family finances,” the minister asserted.
The Labour leader, Keir Starmer, criticized the Conservatives for a perceived downward spiral after fourteen years in office and urged Sunak to call elections in early May. In Starmer’s view, five more years of Conservative governance would worsen the situation, with the economy stagnating and recession looming at times. Projections suggested meager growth this year and slightly stronger growth in 2025, according to estimates discussed in the budget debate.
High tax burden remains a concern, with the Office for Budget Responsibility warning that the tax-to-GDP ratio would stay among the highest in recent decades. Some Conservative backbenchers have argued that the NI cut alone is insufficient to shift the polling trend and have called for further reductions in income tax. The government, however, has rejected calls for immediate income tax cuts and argues that its plan will withstand scrutiny, citing measures such as freezing alcohol and fuel taxes until early next year and expanding eligibility thresholds for childcare support. Hunt also signaled keeping windfall taxes on large energy firms through 2029 and introducing new levies on tobacco and mainstream airline tickets, excluding economy class passengers, to balance the books.