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 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.
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.