Budget 2011 - key announcements

The Chancellor delivered his second Budget to Parliament at 12.30pm today (Wednesday 23 March). 

During the Chancellor's speech we updated our Employment Intelligence blog post to bring you the details of the Government's plans as they were announced. 

Among the key announcements from the Budget statement were:

  • Gross domestic product growth forecast for 2011 revised down from 2.1% to 1.7%. 
  • Consumer prices index inflation to remain at between 4% and 5% during 2011. 
  • Confirmation that national insurance contributions will rise by 1% from April 2011. 
  • Confirmation that the personal tax allowance will increase by £1,000 from April 2011, and by £630 (to £8,105) in April 2012. The temporary 50% tax rate will remain in place this year. 
  • The Government will consult on merging income tax and national insurance. 
  • 150,000 additional work experience and apprentice places for young unemployed people. 
  • A three-year moratorium on "new domestic regulation" for small businesses. 
  • Mileage rate increases from 40p to 45p per mile. 
  • The Government is developing options for a single-tier state pension of around £140 per week. 

Also

Comprehensive Spending Review 2010: key points for HR We detail the HR-related announcements made in the October 2010 Comprehensive Spending Review. 

Economic commentary March 2011: Budget 2011 and protests in prospect XpertHR's latest commentary looks at what's in store for the UK economy. 

Get more information on tax, national insurance and pension rates in the XpertHR statutory rates section: