Today, the Chancellor George Osborne highlighted the importance of rewarding work as key to the UK's economic recovery.
Osborne told a full House of Commons "This budget rewards work. Britain is going to earn its way in the world. There is no other way to recovery." He also pledged to "help people look for work" and to "unashamedly support ambition".
Osborne then announced, what he claims to be "the largest ever" increase in personal allowances. From next year, this will increase to £9,205. As a result of this he said that "millions of people will be £220 better off a year", bringing the coalition within touching distance of its goal of people not paying income tax until they have earned £10k.
As expected, the Chancellor also announced that from April next year, the income tax rate for top earners, those earning more than 150k a year, would come down from 50% to 45%.
"No chancellor can justify a taxt rate that distorts our economy and raise next to nothing - it is as simple as that."
Among other measures were:
- Corporation tax to fall to 24% next month and to 22% by 2014
- £1bn fund to help smaller businesses obtain finance - as an alternative to bank funding
- tax credit scheme to boost the UK's video gaming and animation industry
- reductions in red tape for busines
- a "radical change" in the administration of tax so employers are taxed on the basis of cash running through their business rather than more complicated methods used by larger employers. (a benefit to 3m companies with annual turnovers up to 77k)
- a review by the Independant Pay Review body introducing regional pay in the public sector
A full review will be published by Solutions tomorrow and we would welcome any comments from candidates and clients who would like us to feature their opinions. Simply email your views to firstname.lastname@example.org
Posted on 21st Mar 12