HR Industry News

What's in the 2008 Budget?

— 12 March 2008 —

Chancellor Alistair Darling delivered his first Budget today, saying the government would do everything in its power to maintain stability and keep inflation low. The Chancellor mentioned various measures to equip Britain's economy for growth in the times ahead. Changes of interest to business include:

• A postponement of the 2p increase in fuel tax until October, with an additional increase of 0.5p per litre by 2010.
• A decrease in corporation tax from 38% to 28% by April this year
• Simpler taxes for small businesses
• Better access to government contracts for small companies, with 30% of government contracts to be awarded to small businesses
• An increase of 60% in funds available through the small firms loans guarantee in the next year
• A capital fund of £12.5m to encourage more women entrepreneurs
• Non-domiciled families in the UK should after seven years pay a "reasonable charge"
• £60m to be made available over a period of three years for equipping people for the workplace
• New measures at Heathrow and other airports, using biometric technology, to speed up the time it takes to get through security checks
• Asking the European Commission for tougher targets on car fuel emissions
• Major reform of the vehicle excise duty from 2009
• No road tax in the first year for the lowest polluting new cars from 2010. Higher polluting cars to pay more.

Of interest to the consumer are the announced measures that alcohol and cigarettes are set to increase as of Sunday, with cigarettes up 11p, beer up by 4p a pint, wine 14p a bottle, spirits 55p a bottle and cider 3p a litre. Mr. Darling brought forward the increase in Child Benefit by one year, rising to £20 week from April 2009. The child element of the child tax credit for families on low and middle income is set to increase by £50 a year above inflation. A working family with one child on the lowest income will gain up to £17 a week.

The Chancellor also indicated a renewed focus on tax avoidance, saying that further measures to clamp down on the offence would published later today.

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