Workers in the Capital set to save hundreds per year

The Government's new national insurance plan means the average Edinburgh worker will be paying less per year from April, figures suggest.

Millions of workers in the United Kingdom will see their taxes slashed following Chancellor Jeremy Hunt's cut to NI tax as part of his 2024 Spring Budget.

Figures from the Office for National Statistics show that the median salary for full-time workers living in Edinburgh in the 2022-23 tax year was £36,539. Since January 6, 2024, employees have been paying National Insurance on 10 per cent of their annual earnings between £12,571 and £50,270. They previously paid 12 per cent.

But on Wednesday chancellor Jeremy Hunt announced the starting rate for NI will change from 10 to 8 per cent for 27 million workers from April 6, 2024. The chancellor says the latest cut to national insurance is worth around £450 a year to an employee on an average salary of £35,000.

This means that the average working person in Edinburgh is also set to save around £450 a year as a result of the latest cuts to national insurance.

However, Rachael Griffin, tax and financial planning expert at Quilter, took a swipe at Mr Hunt’s tax cut, branding it little more than a “crowd pleaser”.

She said: “While a cut in taxes will for some be a needed boost, it hardly turns the dial much considering we are dealing with a historic tax burden at present.

“However, it will certainly be a crowd pleaser with someone earning £30,000 a year being around £58 better off a month if you also take into account the national insurance cuts in the Autumn Statement.”