UK government abolishes centuries-old tax breaks for the rich in preelection budget announcements

This is CNBC's live coverage of U.K. Finance Minister Jeremy Hunt's Spring Budget statement.

LONDON — U.K. Finance Minister Jeremy Hunt announced his Spring Budget, possibly the final fiscal event before what promises to be a challenging General Election for the ruling Conservative Party.

Hunt announced that the government will abolish the non-domiciled tax status, implementing a long-standing policy priority for the main opposition Labour Party. Non-dom status enables someone who lives in the U.K. but is not settled in the country permanently to only pay U.K. tax on money made in the country, and to avoid paying it on foreign income.

Prime Minister Rishi Sunak's wife previously claimed non-dom status on income from dividend payments on shares of Indian IT giant Infosys, the firm founded by her billionaire father.

Hunt also confirmed that National Insurance, a tax on payrolled workers, will be cut by 2 pence from 10% to 8%, furthering the previous cut in November from 12% to 10%.

The chancellor is navigating the constraints of fragile public finances and a stagnant economy that entered a shallow technical recession at the end of 2023.

Inflation has fallen faster than anticipated and market expectations for interest rates are well below where they were prior to Hunt's Autumn Statement in November, but many British households are still feeling the cost of living squeeze, while public services remain extremely stretched.

Watch the livestream below:

Former British finance minister Philip Hammond said it would be a mistake not to have a system in place that encourages so-called "non-doms" to reside in the U.K.

Non-domiciled tax status allows people who are based, but not settled, in the country to only pay U.K. tax on money made in