Jeremy Hunt pledges further national insurance cut in the autumn ‘if we can afford it’

Published

12 months ago

May 17, 2024

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Jeremy Hunt has pledged to cut national insurance again in the autumn “if we can afford” it.

The chancellor has lowered the tax twice since he entered Number 11, which the government says has saved people an average of £900 a year.

But speaking at an event in London on Friday, he said “we’re not stopping there”, adding: “If we can afford to go further to responsibly reduce the double tax on work this autumn, that is what I will do.

“We make no apology for wanting to keep cutting the double tax on work until it’s gone, but only when we could do so without increasing borrowing and without cutting funding for public services or pensions.”

Politics live: Hunt attacks Labour in tax speech

Mr Hunt has said he plans to abolish NI entirely at some point in the future, claiming it is “unfair that we tax work twice” when other forms of income are only subject to one levy.

But Labour has attacked the Conservatives for failing to explain how they would pay for the move – which it estimates will cost £46bn – saying it could “lead to higher borrowing, higher taxes on pensioners or the end of the state pension as we know it”.

Answering questions from reporters after the speech, Mr Hunt condemned Labour’s remarks as “nonsense” and “fake news”, adding: “Our ambition has no time commitment because we’ve been explicit that we will only deliver it when it can be afforded. It will come through growth in the economy and not by increasing borrowing or cutting spending.

“It is frankly disgusting to try to scare pensioners by misrepresenting that policy.”

He instead claimed Labour had £38bn of unfunded spending pledges for the next parliament that could only be covered by raising taxes.

“Taxes will go up under any future Labour government, as sure as night follows day,” the chancellor said.

“But taxes will go down under a Conservative government because we will do the hard work necessary to keep our economy competitive.”

However, he would not guarantee a timescale for such reductions.

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Mr Hunt told Sky News: “If you’re saying can I look into a crystal ball and predict what is going to happen in the world in the next five or 10 years, and therefore give you a cast-iron guarantee of when we will be able to reduce the tax burden and to what level? The answer is, of course I can’t. And it would be irresponsible to do so.

“That is why, by the way, our commitments to abolish the double tax on work – employees’ national insurance – we haven’t put a time limit on it because it will depend on factors that are beyond our control, such as the overall growth in the economy as to when we can afford it.

“But my commitment is that the tax burden will go down under a future Conservative government.”

Mr Hunt also refused to commit to lowering tax thresholds if the Tories stayed in power – something dubbed a “stealth tax” by government critics, as more people move into paying tax as wages increase, but thresholds stay the same.

The speech follows a major Labour event on Thursday where Sir Keir Starmer outlined his “first steps” for government if his party were to win power at the next election – the first of which was offering “economic stability”.

Mr Hunt defended the government’s handling of the economy, despite the fall out of Liz Truss’ disastrous mini Budget, saying it was a “myth” that the UK was performing worse than other similar countries.

“Since 2010, the UK economy has faced not one but three massive external shocks dealing with the consequences of the financial crisis, a once-in-a-century pandemic and a 1970s-style energy shock caused by the invasion of Ukraine,” he said.

“Each time, Conservative governments have done what people elected Conservative governments to do – to take the tough and difficult decisions necessary to put the economy back on its feet.”

The race is set for Downing Street – and there is months of this to come

Rob Powell

Political correspondent

@robpowellnews

For the second day in a row, we have a political event that made the general election feel six weeks away, rather than six months.

Did both Labour and the Tories book venues for a summer campaign before discovering they couldn’t cancel the rooms? We’ll never know.

But what we do have a clearer idea of is the contours of the coming race for Downing Street.

The focus for the chancellor today was tax.
Not that you need to be told that by me, given Jeremy Hunt was stood next to three signs proclaiming “Labour’s Tax rises” – positioned in the spots usually reserved for slogans that set out a party’s own ambitions.

If that wasn’t strange enough, we were then treated to the sight of Mr Hunt admitting he was indeed the bloke who put up taxes by £20bn just two years ago – despite the words inches from his head suggesting it’s the other guys who have been whacking up your bills.

To flesh out this attack line, the chancellor said he was talking about future changes and cited costings of Labour policies showing a spending black hole that could only be filled through tax rises.

Labour called that “desperate” and pinged across a document showing the exact same costings applied to the Tory ambition to abolish national insurance.

What could that lead to? You guessed it. Tax rises. And not just tax rises. Tax rises… for pensioners. That was a suggestion Jeremy Hunt said was “fake news… a lie”.

Talk to economists and they’ll tell you taxes are going to have to go up whoever is in power for the coming years to pay for increasing spending on healthcare, defence and pensions.

The alternative would be for swingeing and likely fanciful cuts in other public services.

So there’s a grain of truth in what both parties are saying, but as ever – it sits in a deeper pool of spin and obfuscation.

I hope you’re not getting bored – there’s months of this to come.

Pointing to falls in inflation – a key pledge of Rishi Sunak – and the news the UK has now exited a technical recession, the chancellor said: “To point out, as the Labour Party do, that living standards have fallen this parliament, without mentioning the pandemic or the energy crisis, is taking everyone for fools.”

He claimed Labour’s economic policies would be “profound and damaging for every family in the country”.

But a Labour spokesperson said his speech was “another desperate attempt by the Tories to deflect from their £46bn unfunded tax plan”, adding: “All of Labour’s policies are fully costed and fully funded. Unlike the Conservatives who crashed the economy, Labour will never play fast and loose with the public finances.”

The Liberal Democrats also had a pop at the chancellor, with their Treasury spokesperson Sarah Olney saying: “Jeremy Hunt owes an apology to the millions of hardworking Brits who will be forced to pay more tax as a result of his swindling budgets.

“The Conservative Party is trying to take the British public for fools with this shameless attempt to erase Liz Truss’ botched budget and their unfair tax hikes.

“Voters across the country and in his marginal Surrey constituency will see right through this. Jeremy Hunt cannot defend his record of soaring mortgages, rocketing food prices and crippling tax rises.”

Politics

Nexo back in the United States as Trump Jr. attends exclusive event

Published

20 mins ago

April 28, 2025

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Nexo back in the United States as Trump Jr. attends exclusive event

Cryptocurrency services platform Nexo announced that it is reentering the US market after facing previous regulatory challenges.

According to an April 28 announcement, Nexo’s reentry event featured Donald Trump Jr., who said that he thinks “crypto is the future of finance,” adding:

“We see the opportunity for the financial sector and want to ensure we bring that back to the US.”

Trump Jr. also emphasized the need for a regulatory environment that supports the cryptocurrency industry. He said that “the key to everything crypto is going to be the regulatory framework.”

Nexo is back to fight where it lost

Nexo left the US at the end of 2022, citing a lack of regulatory clarity as the reason behind the decision. At the beginning of 2023, the firm agreed to pay a $45 million settlement to the US Securities and Exchange Commission (SEC) over its failure to register the offer and sale of securities of its interest-earning product.

A month after settling with US regulators, Nexo also decided to shut down its interest-earning product to US-based customers. The product allowed users to earn daily compounding yields on certain cryptocurrencies by loaning them to Nexo.

In late 2022, the California Department of Financial Protection and Innovation also filed a desist and refrain order against the same interest-earning product managed by Nexo. The regulator claimed that the product was an unqualified security, meaning a security that the government has not approved for sale in the form of an investment contract.

US SEC dances to a different tune now

The US SEC, once viewed as the crypto industry’s primary regulatory obstacle, recently appointed Paul Atkins as chair.

The change was positively commented on by crypto entrepreneurs, with Michael Saylor, the CEO of top corporate Bitcoin holder Strategy (formerly MicroStrategy), saying:

“SEC Chairman Paul Atkins will be good for Bitcoin.”

James Gernetzke, chief financial officer of Bitcoin and crypto wallet Exodus, said that “the promise of being able to engage with a regulator on a reasonable basis is going to be very helpful.”

Nexo declined to comment further on its return to the US market.

Magazine: Ripple says SEC lawsuit ‘over,’ Trump at DAS, and more: Hodler’s Digest, March 16 – 22

Politics

Coinbase presses to axe rule banning SEC staff from holding crypto

Published

3 hours ago

April 28, 2025

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Coinbase presses to axe rule banning SEC staff from holding crypto

Coinbase has urged the US Office of Government Ethics to remove a rule banning Securities and Exchange Commission staff from holding crypto.

SEC staff need to use crypto to better understand how it works and the best way to regulate it, Coinbase chief legal officer Paul Grewal argued in open letters sent to OGE acting director Jamieson Greer and newly sworn-in SEC Chair Paul Atkins, which he shared to X on April 25.

“To regulate technology, you need to understand it. To understand technology, you need to use it,” Grewal said in the letter to Greer.

“Permitting commission staff to hold crypto is essential to them developing the knowledge necessary to propose and adopt workable regulatory frameworks for digital securities activity,” he added.

SEC, United States — *Source:* *Paul Grewal*

Legal Advisory 22-04, issued on July 4, 2022, by the OGE, prohibits SEC staff from buying, selling, or otherwise using crypto and stablecoins because they are not “publicly traded securities” and don’t qualify for an exception, unlike stocks.

SEC needs waivers for staff

Grewal said US President Donald Trump directed the SEC and other agencies to submit recommendations for crypto regulations due in around 90 days, and SEC “staff still cannot use the technology on which they are making recommendations.”

In his letter to Atkins and SEC commissioner Hester Peirce, he echoed a similar sentiment, arguing that the inability to hold crypto is a roadblock for the agency’s Crypto Task Force in creating a regulatory framework.

While it’s up to OGE to rescind the advisory, the SEC should take its own action, Grewal said.

“For example, issuing waivers to crypto task force members and other staff actively working on task force matters would be consistent with measures already taken in commensurate advisory situations,” he said.

Grewal added that a waiver would allow SEC staff on the Crypto Task Force responsible for creating crypto regulations to use crypto and “evaluate the underlying digital asset technology.”

Former SEC Chair Gary Gensler, who took office in 2021, was known for his hardline stance on crypto regulation. He resigned on Jan. 20 after spearheading an aggressive regulatory stance toward crypto, bringing upward of 100 regulatory actions against firms.

Following Gensler’s exit, the SEC opted out of a swathe of lawsuits against crypto firms, including Coinbase, on Feb. 27 and, in a more recent April 24 walkback, flagged plans to drop its enforcement against blockchain firm Dragonchain.

Magazine: Bitcoin $100K hopes on ice, SBF’s mysterious prison move: Hodler’s Digest, April 20 – 26

Politics

Local elections 2025: The poll where voters roll the dice?

Published

10 hours ago

April 27, 2025

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Local elections 2025: The poll where voters roll the dice?

This week’s set of elections across England will be a series of firsts: it will be the first big ballot box test of Sir Keir Starmer’s premiership and Kemi Badenoch’s leadership of the Conservative Party.

We will have the first by-election of this parliament in Labour-held Runcorn, the inaugural elections for the mayoralty of Hull and East Yorkshire and Lincolnshire, and our first chance to see if Reform’s surge in the polls since the general election can translate into seats.

In play are over 1,600 council seats, six mayoralties and the Labour-held seat of Runcorn and Helsby after a by-election was triggered by the Labour MP Mike Amesbury punching a constituent on a night out.

And there is plenty at stake for the party leaders with all the upside in the hands of Nigel Farage, who has barely any council seats to defend and hundreds in his sights, as he looks to translate his poll leads into proper governing – be it through mayoral wins or council control.

Sir Keir is bracing for an early verdict on his leadership, with the Runcorn by-election a test of nerves for a Labour Party that will be loathed to lose a seat in the northwest of England to a surging Reform Party.

For the Conservatives, the pressure is obvious and acute.

Of the 23 councils up for grabs, 16 are currently controlled by the Conservative Party and when they last fought these seats in 2021, the Conservatives were riding high on the back of a then popular Boris Johnson and COVID vaccine bounce.

Back then, the party’s national equivalent vote share – an estimate of how the country would have voted if everywhere had had a local election – was at 40%, with Labour at 30%, the Lib Dems at 15%, and other parties at 15%.

Their support has collapsed since then, with current polling putting the Conservatives on 22% – an 18-point drop in vote share – while Reform, lumped in with ‘other parties’ in 2021, is now polling an average 25%.

So, expect to see the Conservatives lose control of councils and hundreds of seats as it haemorrhages support to Reform in a night that is set to be miserable for Kemi Badenoch and her party.

The Conservatives have majorities in 18 of the 23 councils up for grabs, and could even see the Lib Dems overtake them to become the second-biggest party in local government when it comes to council control. That would be a huge symbolic blow. The only glimmer of hope is whether the party can win the Cambridge and Peterborough mayoral race where a former Peterborough MP is looking to take the mayoralty from Labour.

But like the Conservatives, there is little for Labour to cling on to in this set of elections as the party prepares for a lacklustre night at the ballot box, reflecting its steady drop in the polls following the autumn budget.

Support for Sir Keir’s government dipped below 30% last November and has continued on that trajectory, with Labour currently polling on average around 23%.

Labour has been haemorrhaging council seats in council by-elections since the national poll last July, and insiders are briefing that the party looks set to lose control of Doncaster Council, the only one it has control of in this set of elections, and perhaps the mayoralty of the city. Since last July, there have been by-elections in 95 vacant Labour council seats and Labour has lost 43 of them.

But the biggest race on the night for Labour will be the Runcorn by-election, where Reform is challenging to take a parliamentary seat that has long been part of Labour’s territory.

While Reform set out with the aim to destroy the Conservative Party, Labour insiders know how bad the Reform surge is for their own prospects, with the party coming in second to Labour in 89 constituencies in the 2024 General Election. The party is all too aware of the threat of Nigel Farage, as Reform taps into voters’ disillusionment.

“People voted for change in 2024,” explains one Labour insider. “We came in with the double whammy of public services on their knees and the economy facing big challenges, and we promised change. People will be judging us. There is change – waiting lists for the NHS are falling six months in a row – but do people notice it yet? Arguably not.”

Labour is preparing to intensify attacks against Reform. The party is already using remarks made by Mr Farage around re-examining the NHS’s funding model to launch a series of attack ads around the local elections and is likely to step this up ahead of polling day.

But the party is right to be worried by the Reform threat and to give you a bit of flavour of that, we ran a focus group of voters in Doncaster on the latest edition of the Electoral Dysfunction podcast to get a sense of the mood in a city about to re-elect its council and mayor.

‘The country is stuck in a doom loop’

Luke Tryl, director of More in Common, who carried out that focus group in Doncaster for us, told us that the group’s disillusionment with politics and the main political parties was a common refrain all around the country.

“You know, people basically keep hitting the change button, right? You know, they did it in Brexit. They did in 2017 when [Jeremy] Corbyn does very well, Boris Johnson in 2019 was a sort of change and in 2024, change was literally the slogan of Keir Starmer’s 2024 campaign.

“And they keep hitting that change and thinking they’re not getting the change. And so actually it pervades right across the political spectrum. It’s not limited to just the Tories, Labour, Reform. It’s just this sense that something isn’t happening and the system isn’t responding to what we want,” Mr Tryl says.

The undertone of the focus group reflected this sentiment, as respondents honed in on very common top-three concerns across the country – cost of living, the NHS, immigration – but also the sense of mistrust in politicians of all hues.

“It’s not just that people think that the UK is in a bad state, you know, cost of living is bad, the NHS is bad, struggles with immigration, crime,” Mr Tryl said.

“It’s that they don’t have faith in our political class to find solutions. I said recently, I think the UK public moves in a bit of a doom loop at the moment and we can’t seem to find a way out of it and how that changes.”

This is helping Mr Farage’s Reform as voters, turned off by the Tories and disappointed in Labour, look to hit the change button again. “Britain is broken and needs Reform” is Mr Farage’s pitch.

That’s not to say that he was universally liked in our Doncaster focus group.

“It wasn’t actually massively effusive about Farage personally, and we’re starting to pick that up in a few more focus groups,” noted Mr Tryl.

“It’s rather more like, ‘I like what Reform is saying’ – people tend to particularly like what they say on immigration – but I’ve got a few questions about Farage and a word I’ve heard in other groups is baggage. He’s got a lot of baggage.”

He added: “What you’re hearing there is people are slightly willing to put that… we tried the Tories for 14 years. We’re not that happy with what we’ve had from Labour so far. So we may as well roll the dice on this guy. And I think that’s what you’re going to see next week is that rolling the dice.”

The Conservatives fared particularly badly with the Doncaster focus group, with just two out of the nine respondents even being able to name their leader Kemi Badenoch.

“If you’ve got no public image whatsoever, and also no trust, then you’re not going to pull any votes,” was the brutal verdict of one respondent as Mr Johnson was brought up as a politician they thought of as more likeable, relatable and capable of taking on Reform.

As for Labour, only one of the respondents seemed prepared to give the government more time to turn around the country and deliver on election promises, with others voicing criticism over the government’s handling of the winter fuel allowance cuts, high immigration levels and the lack of progress more broadly. Voters were also hostile to Sir Keir, who they believed to be out of touch, privileged and posh.

The best Sir Keir can hope for next week is, in the words of Mr Tryl is to “tread water” as we watch to see whether Reform can translate polling gains into real governing.

A YouGov poll on Friday suggested Reform is in pole position to win the Lincolnshire mayoralty, while the party is ahead in the Hull and East Yorkshire battle, according to the polling. Labour is also nervous about Reform in the Doncaster mayoral race.

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Expectations for Reform are high, with some pollsters predicting the party could make hundreds of gains in traditionally Conservative counties and have a chance of perhaps even gaining control of Labour-held Doncaster council or Durham, where Labour is the largest party. Reform now has over 100 councillors, most of whom have defected from other parties, and is not defending any seats from 2021, so the only way for Mr Farage is up.

Mr Tryl expects the Tories to lose 500 to 600 seats and Reform to pick up the same sort of numbers if it manages to organise its support and turn out the vote.

So this will be a moment to test whether the Reform momentum in the polls translates into real progress on the ground and sees it become a major electoral force capable of challenging the two main parties across the country. In the general election, the party clocked up votes, but didn’t manage to concentrate that support into concrete wins. Can Reform change that in 2025?

This set of local elections is far smaller than normal when it comes to the number of councils being contested than normal (Labour’s restructuring of local government has left a number of elections postponed), while the 11 million eligible to vote in England are just a quarter of those who could cast a vote across the UK in last year’s general election.

But these polls are seriously consequential. This will be a moment when we are able to better observe if the two-party system, battered in the 2024 General Election, really is dying.

Last July, third parties secured more votes than ever and a record tally of seats as support for the two establishment parties hit a record low. These elections could be the moment that Reform tastes real power and the Liberal Democrats surge.

Voters keep saying they want real change. On 1 May, we’ll get a better sense of how serious they are in a set of elections that could point to a profoundly different future for British politics.