November 20, 2019

Boris Johnson: I will cut taxes for working people

A Conservative majority Government will cut taxes for millions of working people on low and middle incomes, the Prime Minister has announced.

National Insurance contributions (NICs) are paid as a percentage of a worker’s earnings, like income tax. For most employees, it currently applies at a rate of 12% on earnings above £8,632. Under the Conservatives:

  • The threshold at which NICs are paid will rise from £8,632 to £9,500 next year (2020-21).
  • This will cut taxes for 31 million workers by approximately £100 a year.
  • Over time we will raise the threshold to £12,500, saving workers approximately £500 a year.

This follows Conservative action to cut taxes for people on low and middle incomes by increasing the Income Tax Personal Allowance. Since 2010, the Conservatives have doubled the personal allowance to £12,500, so that a typical basic rate taxpayer now pays £1,205 a year less tax.

Prime Minister Boris Johnson, said:

“I want people on low- and middle-incomes to keep more of their hard-earned money
“The Conservatives have already cut income tax for over 30 million working people. Now a Conservative majority government will go further by cutting National Insurance too.
“It’s only because we will get Brexit done and end the uncertainty that we can afford to cut taxes for hard-working taxpayers.
“By contrast Labour would create further uncertainty with two chaotic referendums while increasing taxes on every taxpayer by £2,400 a year.”
Region Labour's Pension Tax (£) Extra Months to Work
England 11,167 44
East Midlands 6,150 50
Greater London 12,871 45
North East 9,758 38
North West 6,835 47
South East 14,270 40
South West 7,407 45
West Midlands 10,729 41
Northern Ireland 13,718 35
Scotland 10,653 41
Wales 11,691 36
United Kingdom 11,253 43

Commenting, Therese Coffey, Secretary of State for the Department of Work and Pensions, said:

“Corbyn’s Pension Tax will see ten million savers facing a huge bill forcing them to delay their retirement for almost three and a half years.
“This is just one of the ways a Corbyn government would hammer hardworking people on top of his plans to hike up taxes by £2,400 a year, as well as the cost of his plan for unlimited immigration and the chaos of 2020 being dominated by two more referendums – one on Brexit and another on Scottish independence.
“Only Boris Johnson and the Conservative Party can get Brexit done with a deal, get parliament working again and turbocharge our economy to unleash Britain’s potential.”

Read more about how this Pension Tax will impact millions of savers (PDF)