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Budget 2014: What it Means For Jobseekers

24 Mar 2014

Last week George Osborne revealed the 2014 budget. Whilst there’s been a hub of activity since it was announced, I was keen to consider what this means from a jobseeker and worker’s perspective.

The budget made no mention of creating new jobs, with this being a particular omission to “Generation Y” who are facing a constant struggle to get on both the career and housing ladder.

Budget 2014 Jobseekers

Economic Growth

It’s a positive time for the UK economy, with forecasts predicting that the economic growth will increase by 2.7% in 2014. A strong and growing economy will hopefully lead to more companies expanding and will in turn create new roles, particularly those in accountancy and finance, manufacturing, renewable energy and oil and gas.

However what businesses need to consider is that productivity is down amongst the UK workforce. Essentially, what this means is that more people are required to work more hours to produce the same. With employees valuing a good work/ life balance, this could have a consequential impact.

Personal Tax Allowance

For those in work, the raising of income tax start to £10,500, there should be a little more money in your pocket.  For those who have a higher tax rate, your allowance will increase by £415.

It’s important not to forget that a lot of this is offset by the fact that cost of living has increased more than wage inflation over the last 3 years, and so the reality is that most people will not actually feel financially better off.

There is better news for those with savings and those coming to the end of their careers with an increase in ISA allowances and lowering of pension taxes (along with a new Over 65s Bond).

Final Thoughts

So a mixed budget, not as dull as some were predicting but not a great deal to celebrate  - but at least everyone can have a pint and know that they are saving a penny!

Follow me on Twitter @EdenScottMike or connect with me on LinkedIn.

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