Budget: What It Means For You

What does the new budget mean for workers and businesses? Read more below.

So George Osborne dusted off that famous red suitcase again today. We all got our dibbers out ready to play Budget 2015 Bingo, with words like “Northern Powerhouse”, “budget security” and “responsibility”, all getting over played.

But what did it all mean for workers and businesses?

Well workers will now benefit from an increase in the tax-free personal allowance, to £10,800 in 2016-17 and £11,000 in 2017-18. This means the typical tax payer will have an extra £900 in their pocket each year. Bonus.

There will also be a new national living wage for all workers aged over 25, starting at £7.20 an hour from April 2016 and set to reach £9 by 2020. This should mean that roughly 2.5 million people will see a £5,000 rise over five years.

The threshold for higher rate tax (40%) has also been increased to £42,385 this year and £43,300 by 2017-18.

On the business side of things, the government has predicted one million extra jobs will be created by 2020. More good news. Especially for the recruitment industry.

If you’re not too happy with the changes, then get yourself down to the pub and have a pint. But you’re probably best waiting until 23^rd March 2016, when tax on a pint of beer will be cut by 1%.

Not that it’ll make much difference.