No cuts to tax credits. No further cuts to police budgets. George Osborne’s spending review came equipped with a few surprises – and dare we say a little bit of a human touch.
Councils will receive an extra £10million to help homeless people. Parents of 3 and 4 year olds will receive 30 hours of free subsidised childcare per week. NHS budget to rise to £120 billion by 2020 with an upfront cash injection of £6 billion.
Mr. Osborne has indeed had to listen to the people when delivering this latest review that outlines how he plans to spend taxpayers’ money over the next 4 years.
So what exactly will it mean for small businesses like yours?
Business news in brief:
There’s some mixed news for businesses with cuts of up to 17% within the department. On a more positive note;
- All small businesses to have a digital tax account by 2020
- 26 new enterprise zones will be created.
- Uniform business rate to be abolished – with elected mayors given power to raise rates
- Science budget to rise to £4.7 billion
- Apprenticeship levy set at 0.5% of employer wage bill with £15k allowance for firms that take part.
It’s perhaps no surprise that defence and security fare well after recent tragic events, though some may question the rise in overseas aid budget.
- Defence budget to rise to £40bn by 2020
- Extra cash for the security services
- Overseas aid budget to increase to £16.3 billion by 2020
- £700 million for new technology by selling off underused courts
- £600m for mental health services
- State Pension to rise to £119.30 per week
- Department of Work & Pensions Budget cut by 14%
- Grants for Student Nurses scrapped and replaced by loans
- 3% surcharge on Stamp Duty for Buy to Let and second properties
- Culture Department funding cut by 20%
With the UK one of the fastest growing economies since 2010, Cameron and his crew will reckon they’re doing something right. However, there are signs that this review has bowed to both public and peer pressure in certain areas.
For the full round up visit: http://www.bbc.co.uk/news/uk-politics-34908612