Budget 2005: the implications for HR

Gordon Brown has confirmed new rates for National Insurance, income tax allowances and tax credits for 2005-06.

The rates, which were originally announced in the pre-Budget report on 2 December last year, can be found in XpertHR's statutory rates service, which has details of the current rates, newly announced rates and links to official sources.

  • New National Insurance contributions

  • New income tax bands and allowances

  • Working tax credit

  • Child tax credit

    The Chancellor also announced a number of initiatives to help boost UK employment and productivity levels and, in particular, to help the manufacturing sector respond to competitive pressures from China and India. These include:

  • An additional £65 million to be spent on Employer Training Pilots over the next 12 months;

  • Launching a review of how interaction between manufacturers and the 'creative' industries can raise productivity, to be undertaken by Design Council chairman George Cox; and

  • Consulting with business on how the Research & Development tax credit can better support innovation, with a discussion paper due in Summer 2005.

    Also

    Budget 2005: a question of 'vote now, pay later'?    Adam Geldman presents a detailed analysis of the 2005 Budget. From IRS Employment Review.

    Gordon Brown targets the grey vote    IRS journal Occupational Pensions reports on Budget measures affecting pensions.

    Budget 2005 - Investing for our future: Fairness and opportunity for Britain's hard-working families  Read the full text of the Chancellor's Budget speech from the HM Treasury website.

    Budget for business is good news for UK plc   Personnel Today's Quentin Reade rounds up official reactions from the CBI, the CIPD, the Public and Commercial Services Union, the Recruitment and Employment Confederation and Remploy.

    Read the initial reactions of workplace lobby groups to the Budget, as published on their respective websites: CBI, EEF   and TUC .

    What will the 2005 general election mean for HR?    Read HR & Compliance Centre's January 2005 overview of what the expected May election will have in store for HR.

    Government to consult on family-friendly working   HR & Compliance Centre reports on Gordon Brown's December 2004 pre-Budget report.

    Budget 2004: tax and National Insurance changes   Read HR & Compliance Centre's coverage of the 2004 Budget.