Chancellor Jeremy Hunt cuts workers' National Insurance by another 2p in the Budget, meaning it falls from 10% to 8%
He also increases the child benefit threshold from £50,000 to £60,000
Hunt says the National Insurance cut, to begin next month, is worth £450 a year for the average worker.
It follows a 2p cut in last year's Autumn Statement - but there is no change to income tax.
Labour leader Keir Starmer calls the Budget a "last desperate act" with people paying "more and more for less and less"
New official forecasts say the government will collect 37.1p per pound of GDP in 2028/29 - the highest level in nearly 80 years.
The OBR also says the economy will grow faster than expected - that, plus some tax rises, and existing "fiscal headroom", are what's funding the cuts.
Hunt also increases the VAT threshold for small businesses to £90,000, and announces higher taxes on vapes and business class flights.
And he says he's "abolishing" the "non-dom" tax system, but new arrivals to the UK will still not pay taxes on foreign income for four years.
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