City: Tory tax cut is right...

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GE Osborne’s plan to cut National Insurance has been broadly welcomed by our reader panel, although most think he should have gone further.

The City A.M./PHI Panel, which has been specially recruited with PoliticsHome.com to represent a cross-section of London’s financial and business community, was asked to judge Osborne’s pledge.

Osborne has said he will scrap a planned rise in National Insurance for everyone earning under £45,400, but forty-two per cent of panelists said he should have reversed the hike for everyone. Thirty-two per cent thought his plan was right as it stands.

A significant minority (19 per cent) said Osborne should have kept Labour’s plan to hike National Insurance contributions (NICs) for employers and employees in place, in a bid to show his commitment to cutting the budget deficit.

“Growth friendly policies like a reduction in NICs should be used to increase tax receipts. The deficit must be reduced by cutting wasteful public sector spending,” said one panelist.

• PoliticsHome.com interviewed 402 panelists by email yesterday. Apply to join the panel at www.cityam.com/panel