Pre-Budget Report 2009 at a Glance
Latest Changes to Taxes, Benefits and Public Sector Spending for the New Year
The Chancellor’s pre-Budget report reveals that the UK Government predicts an end to recession by the close of 2009 and a growing economy in the New Year.
The Chancellor’s recent Pre-Budget speech in The House of Commons this week highlights the following:
Tax Charges
- National Insurance up by a further 0.5% from April 2011
- 1% cap on public sector pay in 2011-12 and 2012-13.
- VAT will return to 17.5% from 1 January 2010
- A 50% payroll tax on discretionary bankers’ bonuses above £25,000
Help for the Unemployed
- Tackling unemployment will remain a top priority for the Government in the New Year.
- All 18 to 24 year olds on Jobseeker’s Allowance for six months would be offered a job, training or work placement for at least six months.
- From April 2011, all workers aged 65 and over will qualify for Working Tax Credit if their job is at least 16 hours a week.
Benefit Increases
- The basic State Pension and Pension Credit for single pensioners is set to increase by 2.5%
- Child and disability benefit to rise by 1.5% in 2010
The Public Sector
- Estimated £12 billion of savings a year across the public sector by 2013-14
- A further £5 billion of savings by 2012-13 to streamline public services and stop lower priority spending.
Written by on December 9th, 2009
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