Dharshini David: An election giveaway but taxes will still rise

Chancellor Jeremy Hunt was on his feet for one hour and five minutes. His Budget contained a relatively modest amount of treats. Many are still going to see their tax bills rise. But £11bn will be going on that National Insurance cut - a tax giveaway that will be a relief to workers.

Almost half will come from changing the treatment of “non-doms. Those normally not classed as resident for tax purposes. That will raise over £40bn per year by 2029 alone - overshadowing Mr Hunt’s tax cuts. But the money raised from those sources is particularly uncertain.

National income will reach 37% by 2029 - the highest tax burden since the war. Lower earners are worse off, middle earners are still better off and higher earners are very slightly worse off. Someone on £35,000 will be about £300 better off than someone on £55,000. We are typically £260 worse off, after inflation this year, than two years ago.

But growth is expected to pick up - we could be £1,700 better off in total over the years between 2024 and 2028. But these, like all forecasts, are uncertain and point to voters perhaps heading to the polls feeling worse off.

Read More