What Impact will the 2017 Autumn Budget have?
With chancellor Philip Hammond having recently delivered the Autumn Budget, many employers and recruiters will now be looking to see how the various changes will impact on them.
In the Spring of this year, the Budget gave hope to workers and businesses, and it’s fair to say that many positives can be taken this Autumn, too. Let’s take a look at how the Autumn Budget may affect you:
The general verdict from business groups regarding the Autumn Budget has been positive. The decision to switch the calculation of business rate increases from the higher Retail Prices Index measure to the lower Consumer Prices Index in April 2018 has been welcomed. Similarly, businesses affected by the ‘staircase tax’, whereby those businesses which had offices separated by communal stairs, lifts or hallways were charged higher rates, will now be able to apply to have that rate assessment lowered.
Businesses will need to be aware of and budget for the increases in the Living Wage, which could impact on future recruitment. Smaller businesses will be pleased that the VAT registration threshold will also stay the same for the next two years.
The most important aspect for employees is always the impact that the Autumn Budget will have on wages. Fortunately, there is good news. There will be a rise in the National Living Wage from £7.20 an hour to £7.50 an hour. This equates to an extra £500 a year for a full time worker on the living wage.
The personal tax allowance will also increase slightly, to £11,850 per tax year. Some employee benefits, such as health checks, gym memberships and mobile phones will also no longer carry a tax benefit.
The Autumn Budget has the potential to act as a catalyst for job creation. For example, there were some obvious areas where jobs will be created, like the call for an additional 2,500 prison officers.
However, there were also some less obvious job creation opportunities. There was a commitment to building 150,000 new homes, which will help to create jobs, and a £1 billion investment in transport networks.
Similarly, the chancellor announced that he is aiming to increase productivity in the UK. His ultimate aim is to create a ‘high-wage, high skill economy that will deliver higher living standards’. All of this bodes well for those looking for jobs, as the country seeks to increase its efficiency and output.
Many young people have welcomed the changes in the Autumn Budget. As well as benefiting from the increase in personal tax allowance, the government is also looking to invest in skills and training, which may help those starting out in their career. Similarly, the proposed increase in maths teachers will also help the very young too, giving them more opportunities and possibly influencing their career path as they go through their schooling.
The biggest news in the Autumn Budget was, of course, the abolishment of stamp duty for first time buyers up to the value of £300,000. This will help many Millennials and indeed anyone that is just starting out on the housing market.
All of this, and there was also an extension up to the age of 30 of the Young Persons Railcard!
Once again there are plenty of positives which can be taken from the Autumn Budget. Whether you are looking for your next career move, just starting out in the world of work or are a business looking to recruit, MacKenzie King can help. As specialist financial recruiters, we will be taking the news of the Autumn Budget positively and looking towards a bright future for our clients and candidates alike