'Average earners' feel benefit of Budget, says Hunt

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 that sought to persuade voters to stick with the Conservatives.

Mr Hunt also offered more help with child benefits for 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% will bring in more money because of increased activity.

However, as he insisted those with the "broadest shoulders" will pay more, he committed to scrapping the nondom 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 a year. When combined with a reduction that 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." The changes come against a backdrop of frozen thresholds that will see more people dragged into tax or higher brackets as their earnings rise.