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Chancellor Confirms Well-Trailed NI Increase Reversal

UK

Chancellor of the Exchequer Kwasi Kwarteng has confirmed the already well-trailed announcement that the gov't will reverse the National Insurance contribution hike implemented in the spring by the Johnson gov't.

  • Kwarteng tweets: "I can confirm that this year’s 1.25% point rise in National Insurance will be reversed on 6th November. Its replacement - the Health and Social Care Levy planned for April 23 - will be cancelled. A tax cut for workers. More cash for businesses to invest, employ and grow."
  • Gov't statement: https://www.gov.uk/government/news/national-insura...
  • "The government will also cancel the planned Health and Social Care Levy – a separate tax which was coming into force in April 2023 to replace this year’s National Insurance rise. "
  • "The Chancellor is also set to confirm that the increases to dividend tax rates will be scrapped from April 2023 in his Growth Plan tomorrow. "
  • "The additional funding used to replace the expected revenue from the Levy will come from general taxation."

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