IFS Press Releases

Conservatives plan to cut public spending to cut National Insurance

Date: 29 March 2010
Authors: Mike Brewer , Robert Chote and David Phillips

The Conservative Party plans to cut central government spending on public services outside the NHS, defence and overseas aid by £6 billion in the coming financial year in order to finance a cut in National Insurance that would offset most of the impending increase that the Government has already announced.

Please note: The new (employees') Primary Threshold has been corrected (it had incorrectly stated around £8,200 in the previous version rather than £8,400). The underlying analysis of the proposed NI reforms used the correct level of the Primary Threshold, and is therefore unaffected.