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Budget 2024: National Insurance cut, Vape tax - latest updates

Published 27/02/2024, 12:56
Updated 27/02/2024, 12:56
© Reuters.  Budget 2024: National Insurance cut, Vape tax  - latest updates

Proactive Investors -

  • National Insurance might be cut again
  • Vape tax under consideration says Times as chancellor looks to raise cash
  • Budget is on Wednesday 6 March

A reduction in National Insurance is one of several ax cuts being planned by Chancellor Jeremy Hunt in next week’s Budget, according to reports today.

Hunt has already announced one cut in National Insurance, from 12% to 10% starting this year but is considering lopping a further 1% off the Levy to give a boost to the economy.

Known by critics as a “tax on jobs” the last NI cut was predicted to boost employment by around 28,000, but a further reduction would cost £4.5 billion according to the report in the Times and limit the scope for more headline-grabbing initiatives.

In an election year, hopes for the Tories seemingly rest on the Chancellor pulling something miraculous out of the hat next Wednesday, 6 March.

Vape tax under consideration says Times as chancellor looks to raise cash

Chancellor Jeremy Hunt could announce a new tax on vapes at next Wednesday's spring Budget.

Vaping products are subject to VAT but not the same levy as is applied to cigarettes.

Tobacco duty could also increase at the Budget, to ensure that vaping remains cheaper, sources told the Times.

Big tobacco firms Imperial and BAT (LON:BATS) fall on vape tax news

Last month, plans were announced for UK-wide restrictions on disposable vapes, to tackle the rise in youth vaping.

"Although the industry is jostling for position in the vaping market, given the volumes declines in tobacco, these products are still a relatively small part of the picture," Streeter said.

"Investors had also been expecting greater regulation in the sector, so a potential increase in tax isn’t a wild surprise and given they are global companies a change in UK fiscal policy won't move the dial too much."

Read more on Proactive Investors UK

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