THE health and social care levy will be SCRAPPED from November 6 in a massive relief for hard-up Brits.
As the cost of living crisis continues to crunch family finances, Kwasi Kwarteng vowed today that axing the tax would “raise living standards for all”.
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The 1.25 per cent hike was introduced by Boris Johnson’s government in April this year.
But Liz Truss has wanted to get rid of it for a long time in an effort to make her mark as a low tax PM.
Next year 28 million Brits will be able to save an average of £330 thanks to the tax cut.
Meanwhile, 920,000 businesses will keep almost £10,000 on average.
The health and social care levy, which was due to replace the NI hike in April next year is also in the bin.
The levy was expected to raise around £13 billion a year to help tackle NHS backlogs and fund social care.
Mr Kwarteng today vowed to continue funding both services at the same level.
But the money will now come from general taxation instead.
As a result of the hike cut, basic rate taxpayers on average will gain around £75 in 2022-23, rising to £175 in 2023-2024.
Higher rate tax payers will save around £300 in 2022-23, rising to £700 in 2023-2024.
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The Chancellor said: “Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy.
“Cutting tax is crucial to this – and whether businesses reinvest freed-up cash into new machinery, lower prices on shop floors or increased staff wages, the reversal of the Levy will help them grow, whilst also allowing the British public to keep more of what they earn.”
Tomorrow Mr Kwarteng will announce the government’s hotly anticipated mini budget.
The event will see the Chancellor slash a load of taxes, including stamp duty and corporation tax, on top of the national insurance hike.
