Around 31m people will benefit from a tax cut, as National Insurance contributions thresholds will rise to £9,500 per year from April 2020.

A typical employee will save around £104 in 2020/21, while self-employed people, who pay a lower rate, will have £78 cut from their bill.

The level at which taxpayers start to pay NICs has risen by more than 10% from £8,632 to £9,500 per year for both employed and self-employed people.

For owner-managed businesses, this will mean more money can be personally drawn from the company profits before any tax or national insurance is payable.

All the other thresholds for 2020/21 will rise with inflation, except for the upper NICs thresholds, which will remain frozen at £50,000, as previously announced at Budget 2018.