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Tories vow to hand millions of workers  a £400 tax cut

Boris Johnson today dramatically unveiled a huge £400-a-year tax cut for millions of workers.

The PM revealed that the Tory manifesto will commit to increasing the national insurance threshold to £12,000 from the current level of £8,600.

The move would benefit everyone who earns above the threshold, and potentially cost the government around £10billion.

It further widens the political divide with Labour, as Jeremy Corbyn plans a massive left-wing tax and spending splurge. 

Speaking to staff at a factory on the River Tees, Mr Johnson said he was determined to ensure ‘low tax for working people’. 

Pressed on whether the Conservatives would help ‘people like us’, Mr Johnson said: ‘If we look at what we’re doing, and what I’ve said in the last few days, we’re going to be cutting national insurance up to £12,000.

‘We’re going to be making sure that we cut business rates for small businesses. We are cutting tax for working people.’

He added: ‘I don’t want to be excessively political about it but I would just remind you that Jeremy Corbyn and the Labour Party would whack up borrowing and whack up spending so high that they would put a £2,400 tax burden on every family.’ 

Government sources stressed the change will be ‘staged’ rather than an immediate hike in the threshold – with some claims it could take a decade for everyone to get the whole cut.

The news seemed to be slipped out by Mr Johnson by mistake, with the Tory manifesto due to be launched over the weekend. 

Mr Johnson gave a thumbs up as he posed with workers – and a fan – at Wilton Engineering Services in Middlesbrough

The PM revealed that the Tory manifesto will commit to increasing the national insurance threshold to £12,000 from the current level of £8,600

The PM revealed that the Tory manifesto will commit to increasing the national insurance threshold to £12,000 from the current level of £8,600

Just about everyone who has a full-time job makes National Insurance contributions. 

Introduced after the Second World War, the money was originally intended to fund things like the NHS, unemployment benefit and the state pension – although it now goes into wider government coffers. 

It is deducted from people’s monthly salaries with contributions currently starting for everyone who earns more than £166 a week. 

How does National Insurance work and how much is Boris Johnson’s pledge worth to workers?

Just about everyone who has a full-time job makes National Insurance contributions. 

Introduced after the Second World War, the money was originally intended to fund things like the NHS, unemployment benefit and the state pension – although it now goes into wider government coffers. 

It is deducted from people’s monthly salaries with contributions currently starting for everyone who earns more than £166 a week. 

Contributions are made at a rate of 12 per cent of earnings above the limit. 

That means that effectively people start making contributions on their annual earnings above £8,632. 

Mr Johnson is planning to increase the contributions threshold to about £12,000 – a jump of £3,368. 

That means workers stand to save approximately £400 a year under the PM’s plans.   

Contributions are made at a rate of 12 per cent of earnings above the limit. 

That means that effectively people start making contributions on their annual earnings above £8,632. 

Mr Johnson is planning to increase the contributions threshold to about £12,000 – a jump of £3,368. 

That means workers stand to save approximately £400 a year under the PM’s plans. 

The Employment Allowance is currently claimed by over 1 million employers to reduce their employer NICs bills by up to £3,000. 

The next Conservative Government will increase the Employment Allowance to £4,000, which will provide a tax cut of up to £1,000 for more than half a million businesses. 

This will amount to almost a half a billion-pound tax cut for small businesses. 

During his visit today, Mr Johnson also accused Jeremy Corbyn of ‘complete invention’ over claims that the Tories would ‘sell out’ the NHS in a post-Brexit trade deal with the US.

‘I was amazed by what (Jeremy Corbyn) had to say. It’s a complete invention,’ he said. 

The PM said the NHS is ‘one of the greatest contributions this country has made to the world’ before adding: ‘Under no circumstances will the NHS be for sale, be on the table in any trade negotiation we do with anybody.’ 

Mr Johnson said: ‘There’s a very clear reason why Jeremy Corbyn and the Labour Party produced this nonsense about free trade deals and the NHS, which is an absolute myth, and that’s because they want to conceal the gap at the heart of their own policy on Brexit. 

‘They will not level with the public about what they want to do with Brexit next year.’ 

He added: ‘Jeremy Corbyn wants to have a second referendum but what he won’t tell you is what position he would take in that referendum – I tried to ask him last night, did you see this thing? 

‘I asked him nine times, I did not get an answer, and frankly I do not see how you can lead this country if you cannot answer a very simple question – what side are you going to be on in a referendum on whether to leave or remain in the EU.’   

Speaking to staff at a factory on the River Tees, Mr Johnson said he was determined to bring in 'low tax for working people'

Speaking to staff at a factory on the River Tees, Mr Johnson said he was determined to bring in ‘low tax for working people’

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