Unless you have been living under a rock, you will know that 22nd November 2017 marked the announcement from Chancellor Philip Hammond on the Autumn Budget; while the media has reported lots of matters with the main areas of focus being stamp duty and the NHS, the autumn budget will also affect HR and in this blog aspire cambridge will tell you what you need to be aware of;
An increase to the minimum wage has been out into place and is designed to help young workers; the national living wage paid to employees aged 25 years old and over will rise from £7.50phr to £7.83phr as of next year.
Investment in Skills
It was reported that poor performing managers are costing the UK economy up to £84billion every year in lost productivity. The Chancellor has called on industry leaders to invest more money into training and management development to help reduce this huge cost to the UK economy. The Chancellor has announced an immediate investment of £30million between the Government, CBI and TUC in the development of digital learning so this is something to look out for.
There are currently 1.1 million people that are out of work in the UK so it is refreshing to hear the OBR forecast reporting another 600,000 more people in work by 2022. The Chancellor has stated that he is committed to jobs of the future and has earmarked £500million for projects around AI, 5G and fibre broadband in a hope to help tech start-up businesses reach scale. The Chancellor feels that Britain is at the forefront of tech development and the intention to maintain and enhance this position is something the Government are keen to do.
Self-Employed VAT Changes
The Chancellor announced that he felt the current threshold was too high and the Office for Tax Simplification has real concerns around self-employed VAT he stated that he would be leaving it at it is. Experts feel this may be down to his forced U-turn on the topic earlier in this year.
As always, we will aim to update and inform you as and when new changes take place further to the autumn budget in regards to HR.