2015 Budget: Impacts on Individuals and Industries
Last week saw the announcement of the 2015 budget. On the whole – or perhaps it’s just in light of the recent eclipse – things are looking a whole lot brighter, with Britain’s economy currently growing at a rate of 2.3%.
Let’s take a look at exactly what it means for you or your industry.
- The UK is experiencing record figures for employment, with Osbourne claiming that 1,000 jobs a day have already been created, allowing potential new opportunities for you to arise. Keep an eye out and send us your CV if you fancy a change!
- In relation to this unemployment rates are rapidly falling, from 5.7% to an expected 5.3% by the end of the year. From October, minimum wage is increasing to £6.70, with predictions of it reaching £8 by the end of the decade.
- Personal tax free allowance is on the up, so people can now look forward to earning £10,800 before being taxed and £11,000 in the next few years.
- In terms of travel, there’s no need to panic about the price of commutes - with petrol duty being frozen.
- Households are an average of £900 better off in last five years, with inflation rates also falling – hopefully resulting in better standards of living for all.
- Those interested in furthering their education will be pleased to see that the government are proposing to offer loans of up to £2,500 for UK students studying for PHD’s and research based masters degrees.
- For all you keen savers, a fully flexible ISA will allow savers to withdraw money and put it back in later in the year without losing any of their tax free allowance. Annual savings limit for ISAs are also being increased to £15, 240.
- The oil and gas industry have good news on their horizon, with 1.3bn of support being granted through a series of tax cuts to petroleum revenue levies – a nice change after being hit hard by the recent slide in oil and gas prices.
- As for energy and renewables, consultation on a £1billion ‘tidal lagoon’ in Swansea Bay to generate green energy is underway – potentially creating a lot of job opportunities in the process. With the Green Investment Bank being headquartered in Edinburgh, this will also be good news for them.
- The food and drinks industry sees a welcome cut on alcohol – 1p off a pint and 2p off cider, whiskey and spirits, with wine duty remaining frozen. So, if you’re feeling thirsty, celebrate by grabbing yourself a pint… and save a whole penny in the process!
- Construction is likely to see a boost in business, with more help being made available for 1st time buyers through a new ‘help to buy’ ISA. This will see the government topping up every £200 saved for a deposit by £50. It seems inevitable that this will lead to more properties being built and more incentive for local authorities to release land or brownfield sites, alongside a relaxation in planning permission.
- The government are increasing the number of long term gilts to be sold – essentially creating ‘lock-in’ low borrowing rates, allowing the potential for new businesses to be born or expansions to be made. If this has always been on your agenda, now might be the time to start properly investing in your big idea!
- All in all, trade deficit is the best it has been for 15 years, with lots of exports occurring and further increases expected – particularly strong relations being made with China.