DEVELOPING A MODERN EAST LOTHIAN £1billion Youth Contract
Responding to the challenge surrounding youth unemployment, the Government has announced the £1 billion Youth Contract, designed to help young unemployed people into work. The Youth Contract will provide nearly half-a-million new opportunities for 18-24 years-olds, including apprenticeships and voluntary work experience placements.
The programme will provide support to private and public sector employers towards creating new, sustainable jobs for young people, enabling these organisations to benefit from the talents young people can bring to the workplace. Between 2012 and 2015 the initiative is expected to provide nearly half a million new opportunities for young people. A wage incentive is available to those employing an 18 to 24 year-old from the Government's Work Programme for 16 hours or more each week. There is a part-time rate of £1,137.50 for work between 16
and 29 hours and a full time rate of £2,275 for 30 hours or more. Small businesses (less than 50 employees) can also claim a part payment eight weeks after the employee starts work. The job must last for at least 26 weeks. The Youth Contract is open to employers throughout the UK; including those that already employ large numbers of young people such as retail and construction and emerging sectors like the green economy, creative industries and ICT. The wage incentives will be primarily available to private, voluntary and community sectors and social enterprise employers. Central government departments are excluded; however, the wider public sector is eligible.
For more information visit: http://www.dwp.gov.uk/youth-contract/
Key budget announcements for business
• The main rate of corporation tax will be reduced by an additional one per cent, so that the rate will reduce from 26 per cent to 24 per cent in April 2012, to 23 per cent in April 2013 and will come down to 22 per cent by April 2014.
• The top rate of income tax will be reduced from 50% to 45% in April 2013, and individual's income tax personal allowance will increase at the same time by a further £1,100, taking it to £9,205 in total.
• A cap will be introduced on all unlimited income tax reliefs, of £50,000 or 25% of income, whichever is higher.
• Following the Office of Tax Simplification review of small business taxation, the Government will consult on introducing a voluntary cash basis for unincorporated businesses up to the VAT registration threshold; a simplified expenses system for business use of cars, motorcycles and home; and the possibility of a disincorporation relief.
• From 1st April 2012, the VAT taxable turnover threshold, which determines whether a person must be registered for VAT, and the registration and deregistration threshold for relevant acquisitions
from other EU Member States, will be increased from £73,000 to £77,000; and the taxable turnover threshold which determines whether a person may apply for deregistration will be increased from £71,000 to £75,000. The simplified reporting requirement (three line accounts) for the income tax Self Assessment return will continue to be aligned with the VAT registration threshold.
• The Government accepts the Low Pay Commission's recommendation for a below inflation increase in the National Minimum Wage to support employers and help protect jobs.
• The Enterprise Management Incentive scheme, which helps SMEs recruit and retain talent, will provide additional support to help start-ups access the scheme and more than double the grant limit to £250,000, subject to State Aid approval.
• Selection of Belfast, Birmingham, Bradford, Bristol, Cardiff, Edinburgh, Leeds, London, Manchester and Newcastle has been confirmed to become broadband super-connected cities, as part of the £100 million investment announced at 2011 Autumn Statement. £50m will be used to fund a second wave of cities.
| Page 2
| Page 3
| Page 4
| Page 5
| Page 6
| Page 7
| Page 8
| Page 9
| Page 10
| Page 11
| Page 12