Shadow Chancellor George Osborne will today pledge to scrap part of the 1 per cent increase for lower and middle earners.
The Tories calculate that seven out of 10 workers would be better off under their plans. They will not pledge to scrap the total increase for everyone- a move that would cost around £10bn annually.
Chancellor Alistair Darling previously announced two 0.5 per cent increases in NI contributions for both employees and employers, one in the 2008 pre-Budget report and one in the 2009 PBR, both to take effect in April 2011.
Osborne will say the NI cuts will be paid for through cancelling some projects and pledging to reduce waste and cut the cost of procurement.
Chief Secretary to the Treasury Liam Byrne told the BBC: “They have entirely lost sight of cutting the deficit. Rather than making more promises he can’t afford, the test for George Osborne is to tell people how he’ll pay for the ones he’s got.”