Pre-budget – latest report

Pre-budget – latest report

10.12.2009

By: Caterina Glenn

Pre Budget News – The latest report

The Chancellor and Government have today concluded some of the following:

Time to pay arrangements for businesses extended for “as long as necessary”. As many as 160,000 companies have taken up this scheme.

Exemption for business rates to be extended into 201-2011 – for properties at a rateable value below £18,000

Next year’s planned rise in corporation tax for small businesses from 21% to 22% has been shelved

Over-65s will have to work fewer hours to qualify for working tax credit; over-50s unemployed to be given new training

Bingo duty cut from 22% to 20%

The VAT standard rate is returning to 17.5% on 1 January 2010 as planned.

GDP growth next year will 1 to 1.5%, 3.5% in 2011 and 3.5% in 2012. The third quarter of 2009 saw GDP shrink 0.3%. 2009 will see the economy reduce by 4.7%.

Inflation to fall back to 1.5% by end 2010

Potential losses from the government’s intervention into banks will fall to £10bn, from an anticipated £50bn

The budget deficit will be £178bn this year, a little larger than first thought. Next year the deficit will fall by £2bn to £176bn. 2011 will see it fall to £140bn, 2012, £117bn and 2013, £96bn.

Up to £160m will be invested in clean energy and low carbon technology. This will include £90m for green infrastructure projects

A £500m capital growth fund will be set up to aid businesses struggling to get access to credit.

The UK’s net debt as a percentage of GDP stands at 56%. The figure would rise next year to 65% before rising to 78% by 2014/2015

Electric cars will be exempt from company car tax for the next five years and tax allowances will be introduced for electric vans.

Pharma and bio-tech patents profits will be taxed lower, at 10% corporation tax

Households will be charged an extra 50p per month on their landlines to help the government fund the expansion of faster broadband across the country.

Up to 10,000 students from low income backgrounds will receive financial support and helped into internships and businesses

Pension tax relief to be cut for people earning more than £150,000

The individual inheritance tax threshold will be frozen at £325,000, married couples at £650,000

Current spending growth of 0.8% to hold until 2014-2015

Another clamp down on tax avoidance. Darling will be looking at 100,00 offshore accounts to protect £5bn a year of revenues

£5bn in public spending savings through outsourcing of prisons and reforming legal aid

A one-off levy on banking bonuses worth more than £25,000 to put £500m back into the UK’s coffers.

No public spending review before the general election.

£2.5bn to support military operations along with £5m set aside to help returned soldiers set up businesses.

From 2011, National Insurance contributions will rise by 0.5% for all employer, employee and self-employed rates but those paid less than £20,000 will be spared, saving £3bn a year.

Interview Tips

Looking for interview tips?

Checkout our helpful hot list »

  • 100% again another well matched candidate. The whole accounts department now consists of HT candidates.

    Practice Manager Legal Company in Surrey
  • We have used Howett Thorpe for a number of roles. The relationship we have with the staff there is excellent and we know it's only a quick call and they will have everything in hand.

    Human Resources IT company in Surrey
  • Richard was fantastic - great quality CVs and a pleasure to work with, would definitely use Howett Thorpe again.

    Human Resources Catering Company in Middlesex
  • Excellent service as usual! Wouldn't use another agency - Howett Thorpe are the only agency that don't harass me every other week!

    Finance Manager Leisure Industry in Surrey
  • Julia is a joy to work with. Understands needs of role and company. Fourth recruitment done for me and has yet to provide a CV I wouldn't hire. She is the reason I use Howett Thorpe, a real asset you.

    Group Financial Controller IT company in Hampshire
  • Julia has saved me so much time and effort by ensuring that I get the right CV's. She has made sure that the process runs as smoothly as possible, and is a pleasure to work with. I cannot recommend Julia highly enough.

    Group Financial Controller IT company, Surrey
  • Laura was amazing and made me feel at ease the whole way through the whole interview process to getting the job.  She really is one in a million.

    Group Financial Controller G Potts
  • We have worked with Laura for several years now and she always manages to understand our needs, she is a dream to work with.

    Finance Manager Import Company in Surrey
  • Very helpful and prompt in arranging suitable candidates.

    Processing Manager Business Services in Surrey
  • Mark Bonner specifically has been a great support and we have enjoyed working with him

    Human Resources Blue Chip company in Surrey