Could VAT and NI Cuts Boost Economy?

Chancellor Rishi Sunak is reportedly drawing up plans for temporary tax cuts and other measures to help boost the British economy as it emerges from lockdown next month.

Facing a steep recession triggered by the coronavirus outbreak, which could involve high numbers of job losses and business failures, the Chancellor is searching for ways to bolster the economy and boost spending.

It is thought that the Chancellor is considering a range of options, including a VAT cut, a reduction in employers’ National Insurance Contributions and business rates reform.

The Chancellor’s final Spring Budget was met with frustration from large portions of the business community, particularly freelancers and other small business owners concerned about the National Insurance tax hike.
But there were also some small crumbs of comfort for small businesses. Here is some of the important budget news and reaction.

Reaction: Self-employed National Insurance U-turn

Freelancers and contractors have welcomed the Chancellor’s decision to drop a National Insurance contributions (NICs) increase that would have affected self-employed people.
Chancellor Philip Hammond told MPs that the government would not proceed with NICs increases laid out in his budget last week after the government came under fire for apparently seeking to break a 2015 manifesto promise.