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Budget Announcement

22/06/2010

Budget Announcement

As most of you will be aware the Chancellor yesterday announced details of the new coalition Government’s "Emergency Budget" to deal with the current economic climate.

A number of these changes will have a significant impact upon businesses with employees, including the following:-

  • A rise in the threshold for National Insurance payments.

  • A planned consultation upon whether the default retirement age of 65 should be phased out.

  • The method by which increases in benefits such as maternity pay and sick pay are calculated will change in 2011, and increases will be in line with the Consumer Price Index, rather than the Retail Price Index. It is hoped that this will save £6 billion a year.

  • A two year pay freeze in the Public Sector - but public servants who earn to less than £21,000.00 per annum will receive a flat pay rise of £250.00 in both of these years.

  • The personal allowance on which no income tax is payable will increase by £1,000.00 to £7,475.00 in April 2011.

KBL has significant experience advising and assisting clients in relation to employment law and Human Resources issues.

We also provide in-house training sessions to employer’s management staff to ensure they are equipped to tackle employment issues including employee grievances and complaints of harassment.

If you require advice or assistance in respect of the above or any other employment matter, please contact John Hassells, Head of Employment on 01204 527777.

Would your colleagues or associates like to receive these free email updates? If so, please contact jhassells@kbl.co.uk.