Bleak mid-winter in PBR
Alistair Darling had little seasonal cheer to bestow on the sector when he gave his Pre-Budget Report on 9 December
But with the economy having contracted by 4.75 per cent in 2009 at the time (although a return to growth was forecast for the fourth quarter), there was not much scope for largesse. Gift Aid reform was noticeable by its absence.
Announcements included:
- The return to 17.5 per cent VAT from 1 January 2010 as previously indicated.
- Consumer inflation predicted to rise from the current 1.5 per cent to around 3 per cent in early 2010.
- All employer, employee and self employed rates of national insurance increased by a further half per cent from April 2011.
- Measures to guarantee work or training for all under 24-year olds after six months’ unemployment effective from January 2010.
- Measures to support over 50s to receive specialist and tailored support to get a job, and to work part-time after retirement age if they wish to ‘make work pay for everyone, regardless of their age.’
- £160m of public and private investment in low carbon projects supported through the Innovation Investment Fund and the Carbon Trust’s Venture Capital scheme.
- Levy of 50 per cent on all bank bonuses until 5 April paid to individuals in excess of £25,000. It would be paid by the bank and, after accounting for bonus reductions is expected to generate £550m of funding for getting the younger and older unemployed back to work.
- Inheritance tax individual allowances frozen at £325,000 for the next year.
- Public spending to increase in 2010/11 by £31bn, a growth rate of 2.2 per cent in real terms. Growth rates in public spending will be reduced ‘once the recovery is secured’.
- Spending on overseas aid increased to reach 0.7 per cent of gross national income by 2013.
- £75m to kickstart the Social Investment Bank.
Author: Clarissa Dann
Clarissa Dann was the editor of Caritas as well as an HR and management online service,he People Bulletin until July 2011.
She is now the editor of the specialist trade finance magazine, Trade and Forfaiting Review which can be viewed at www.tfreview.com but does write on charity finance and investment from time to time.
Clarissa has a background in legal and professional publishing, as well as business journalism and holds an MBA from
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