- Average worker in Scotland will be £833 better off a year as government cuts taxes
- Over 2.4 million workers in Scotland will benefit as National Insurance cuts hit pay packets this month
- 27 million employees to benefit across the country from tax cuts that reward work and grow the economy
The typical worker in Scotland will be £833 better off thanks to successive cuts to employee National Insurance contributions (NICs), which hit pay packets this month.
27 million workers across the UK will see a boost to their take-home pay from 6 April, with over 2.4 million people to benefit in Scotland alone.
The savings are a result of successive cuts to NICs announced by the Chancellor, slashing the main rate of employee NICs from 12% to 8% and the main rate of self-employed NICs from 9% to 6%.
These cuts are possible because the economy is turning a corner, thanks to the government’s decisive action to bring inflation down from 11.1% to 3.4%. The government is sticking to its economic plan and in the longer-term, it has the ambition to cut NICs further, ending the unfair double tax on work.
Chancellor of the Exchequer Jeremy Hunt said: “The tax cuts coming into force this week show that our economic plan is working, putting £833 a year back into the pockets of working people across Scotland.
“People will start to see this saving in their pay packet this month and, when it’s responsible to do so, we will go further – ending the unfair double tax on those who earn their income through work.”
Secretary of State for Scotland Alister Jack said: “It’s fantastic that this second 2p cut to National Insurance, on top of the first 2p cut in January, is putting more money in the pockets of hard-working Scots from today. Around 2.4 million Scottish workers will be £833 per year better off, on average.
“It’s all part of our plan to increase prosperity and grow the economy. And with inflation expected to fall to target next quarter, our measures are working.”
Taking the NICs reforms across Autumn Statement and Spring Budget together, this is an overall tax cut worth over £20 billion per year, the largest ever cut to employee and self-employed National Insurance.
Due to the combined cuts to employee and self-employed NICs, the OBR forecast that total hours worked will increase by the equivalent of almost 200,000 full-time workers by 2028-29 and help grow the economy.
These changes mean that for single individuals on average salaries, personal taxes would have been lower in the UK than in France, Germany and every other G7 economy, based on the most recent OECD data.
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