JEREMY Hunt is planning to whack a new tax on vapes and cut national insurance at the Spring Budget next week.
The Chancellor is eyeing up a 1% reduction in national insurance – but could go further depending on an assessment of the economy by the government’s economic watchdog.
PAJeremy Hunt is expected to cut national insurance and hike taxes on vapes at the Spring Budget next week[/caption]
The Office for Budget Responsibility will present its findings to Mr Hunt on Friday, ahead of the main event on March 6.
It’s expected the assessment won’t be great – with space for tax cuts being tighter than previously anticipated.
In a major win for The Sun’s Keep It Down campaign, fuel duty is expected to stay frozen for a 15th year.
But in a blow to house hunters, plans to cut stamp duty have been shelved for now.
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Cuts to inheritance tax and an extension of child benefit to middle-income families have also been parked – but could appear in the Autumn Budget to time well with a late General Election.
A new vape tax will be imposed on imported e-cigs and manufacturers in an effort to make them unaffordable for kids.
The duty will apply to the liquid in vapes, with higher levels for products with more nicotine.
There will also be a one-off tax hike on fags to ensure that vapes are still the cheaper option for smokers.
The two levies are expected to raise £500m for treasury coffers.
But it will mean a price hike for smokers.
The vape tax is being modelled on European schemes, such as Germany which imposed a €1.60 duty on every 10ml of vape liquid.