Jeremy Hunt said the moves would address 'unfairness' in the tax system and help 'make work pay'. But Labour leader Sir Keir Starmer said freezing the thresholds when people start paying tax meant more people were being dragged into higher tax bands.
The combined effect of cutting National Insurance and freezing income tax thresholds means people earning less than £25,000 are worse off, while those on £26,000 to £60,000 are better off and those earning £60,000 to £120,000 will see little difference. Sir Keir said Labour welcomed the cut to National Insurance but argued the failure to grow the economy meant the government was asking people 'to pay more and more, for less and less'.
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