RISHI Sunak has hinted at a cut to National Insurance in next week’s spring Budget – which he said would be a “Union tax cut”.

Speaking to journalists during a visit to Scotland, the Prime Minister said that cutting insurance was a priority because that is a “tax on work”.

Chancellor Jeremy Hunt announced in his autumn statement last year that the levy – which is paid by workers across the UK – would drop from 12% to 10% in January. The Spring Budget will be delivered on March 6.

Speaking in Scotland, Sunak said: “The Chancellor and UK Government chose to cut National Insurance. There are lots of reasons for that, but first and foremost it is a tax on work and I believe in a country and society where hard work is rewarded.

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“That's something that's really important to me. It's important to [Scottish Tory leader Douglas Ross] and [Scottish Secretary Alister Jack], to all the people in the government and cutting National Insurance is rewarding hard work.

“It's also important to us to be a government that delivers for people in every part of the United Kingdom. I'm very conscious that the SNP is making life harder for hardworking people by putting their taxes up, I want to make life easier for people. I want to give them the peace of mind that there's a bright future for them and their families.”

He added: “It is a Union tax cut. It's a tax cut for everyone at work and the contrast between what we're doing and what the SNP government is doing could not be starker.”

Sunak said that Jack has been pushing for any tax cuts in the spring budget to be to National Insurance and not to income tax rates.

In December, annual statistics from the OECD (Organisation for Economic Co-operation and Development) showed that the Tory government had made the UK’s tax-to-GDP ratio the highest since records began.

MSPs passed the final budget for the next financial year this week, including a new income tax band being created, which will see those on a salary between £75,000 and £125,140 paying 45%; while a 1% increase to the highest rate of tax – for those earning more than £125,140 – will take it to 48p in the pound.

In passing the budget, Deputy First Minister Shona Robison insisted Scotland’s tax system was “progressive” and will provide £500 million in funding for the NHS.