Key Points of Autumn Statement 2016

Thursday, November 24, 2016

Yesterday's Autumn Statement announced by Chancellor Phillip Hammond, has seen a rise in the National Living Wage from £7.20 to £7.50 from April next year.

Other key points include:

  • National Living Wage to rise from £7.20 an hour to £7.50 from April next year 
  • Tax savings on salary sacrifice and benefits in kind are to be stopped; with exceptions for ultra-low emission cars, pensions, childcare and cycling.
  • Income tax threshold to be raised to £11,500 in April, from £11,000 now.
  • Higher rate income tax threshold to rise to £50,000 by the end of the Parliament.
  • There will be a new penalty for implementing tax avoidance schemes that are challenged and defeated by HMRC
  • Borrowing is forecast to be £122billion higher in the period until 2021 than forecast in March's Budget.
  • The NHS will receive an extra £10billion of funding a year by the end of 2020-21.
  • Letting agent fees are to be banned
  • An extra £1.4billion is to be invested to build 40,000 new homes.
  • £400million investment into venture capital funds through the British Business Bank to unlock £1billion in finance for growing firms.

 

Recruitment Grapevine got the reaction to the autumn statement from the recruitment industry:

CV-Library

CV-Library's Founder and Managing Director, Lee Biggins, comments:  “The Chancellor’s optimistic outlook on the UK’s labour market is extremely positive to see. Our economy’s employment is currently at a record high and in order for this to continue, we must tackle the upcoming challenges head-on and prepare to be resilient as we embark on our exit from the EU. Most notably, the UK labour market is forecasted to remain robust and to grow every year up until 2020, confirming business confidence across the UK. Our own data confirms this: in the months following the Brexit (July 2016 – October 2016, inclusive) we found that job postings actually increased by 7% on the previous year, while applications and salaries also rose by a steady 2.4% respectively.

“With investments being made in the UK’s house building, transport infrastructure and science sectors, we should see job creation boost in these areas, bringing about new opportunities for workers all over the UK. Furthermore, the increase in the National Living Wage brings positive news to many workers across the nation and it is good to see that the government recognises the need to raise pay in order to boost productivity and ensure that our country is keeping up with some of our European counterparts.”

Adzuna

Doug Monro, Co-Founder of Adzuna says: “It’s encouraging to see the Chancellor placing jobseekers and employees at the heart of his Autumn Statement and offering them some reassurance during a period of economic uncertainty. The increase to the National Living Wage may give more households some financial breathing space, but the impact on employers has to be considered too as we don’t want to discourage companies – particularly small businesses – from hiring and expanding their teams.

 “The £400m earmarked for venture capital funds that will unlock £1bn in finance for growing firms will hopefully boost the British spirit for entrepreneurship. The rise in self-employment and the thriving research and development sector cited by Phillip Hammond in his speech shows that the UK is a hotbed for innovation and get-up-and-go. This is further proof that backing this entrepreneurial explosion can be just as effective a tactic as supporting big businesses.”

 

Article Source: http://www.recruitmentgrapevine.com/article/2016-11-23-cv-library-reacts-to-autumn-statement

  

Working from offices in Stoke-on-Trent, Cream Personnel Services is a name that is synonymous with recruitment in North Staffordshire and South Cheshire. Established in 1973 we have become the first choice Recruitment Agency for job seekers and employers throughout the region.

To contact the Cream Team about recruitment send an e-mail to: stoke@creampersonnel.co.uk  or call: 01782 262731.