Spring Budget - Christine Cairns video transcript

The Chancellor came into this budget with little room for give-aways.

But he did deliver the much heralded 2 per cent cut in national insurance. 

This is not as impactful as the rumoured reduction to the headline income tax rate. But the further fall in National Insurance Contributions will act as another welcome and almost immediate cut in taxes for Britain’s hard-pressed working population.

The sting in the tail is the continued freeze on tax thresholds. 

Some of the money to help offset the cut in national insurance will come from a range of measures including a rise in tobacco duty, end to non-dom status and extending windfall taxes on energy.

But the continuing freeze on thresholds will eat into any boost to incomes from the cut in national insurance. 

The anticipated reform to the ISA system came in the form of a new British ISA. This allows a further £5,000 tax free investment into UK equities on top of the current limits which remain unchanged. This will benefit wealthier savers, encouraging them to invest in UK-focused assets to help boost the economy.