Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

2010 Budget - Key points

22 June 2010 #Employment


The coalition government today announced it`s first budget. Here are the key points for businesses and the public sector.

 

Public Sector

 

Public sector workers face a two-year pay freeze.

 

Public sector workers earning less than £21,000 will get a flat pay-rise worth £250 for the next two years.

 

Limits will be put on the salaries of the highest paid public sector workers.

 

A new government commission will review the cost of public sector pensions. One proposed solution to ease the burden of public sector pensions on the state is to increase workers` contributions to the pension fund.

 

Businesses

 

From April 2011, employers National Insurance threshold will rise by £21 per week, above indexation.

Corporation Tax will be cut next year to 27%, and by 1% annually for the next three years, until it reaches 24%.

The small companies` tax rate will be cut to 20%.

New business set up outside London, the South East and East of England will be exempt from £5,000 of National Insurance contributions for each of the first 10 employees they hire.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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