Autumn budget figures Flashcards
bus fare increase
£2 to £3
national minimum wage figures
- for over 21: 11.44 to 12.21 (6.7% increase)
- 18 - 20 : £10.00 p/h (16.3% increase)
- 16 - 17, and apprentices : £7.55 p/h (18% increase)
changes in income tax
no change, frozen till 2028
why is no change in income tax good
- prevents fiscal drag
- as salaries increase, rate of income tax will stay the same
employee national insurance contribution
no change
employer national insurance contribution
increase from 1.2% to 15% by next April
what are employer national insurance contributions
a tax that employers in the UK are required to pay on the earnings of their employees
what are employee national insurance contributions
is deducted from the employee’s gross pay before they receive their net income. it is directly deducted from their wages, meaning it reduces the employee’s take-home pay
impact of an increase in employers national insurance contributions
Increased Cost of Employment:
An increase in the employer’s NIC would raise the overall cost of employing staff, as employers must now pay a higher percentage in contributions without passing this cost onto employees.
- To manage the higher costs, firms may reduce their workforce, delay hiring new staff, or cut hours. This is especially likely in industries with tight profit margins, where labor is a significant portion of overall costs.
- Potential Inflationary Effects:
Some businesses may pass on the increased costs to consumers in the form of higher prices, especially if the higher employment costs affect their bottom line. This could lead to mild inflationary pressure in the economy, particularly in sectors like retail, food services, and other labor-intensive industries.
how much do employees have to earn before their employer has to pay national insurance on
£5000, down from £9100
national insurance allowance for small businesses
£10,500, up from £5000 per year
next year(2025), how many businesses wont be paying national insurance, and how many will be paying the same amount or less
865,000 will be paying none
- a million will be paying the same or less than they were this year
how much revenue will the autumn budget be bringing in
25 billion pounds per year, for the next 5 years
department of education subsidy
6.7 billion pounds, including 1.7 billion pounds to rebuild the schools that need it the most
- further 2.3 billion pounds for schools to help hire more teachers
- 1 billion pounds to support children with special needs
- 300 million pounds for higher education
housing figures
stamp duty is increasing for those who are buying second homes - from 3% to 5% starting 1st Nov
