The last budget before the general election will be presented on March 24th, the Treasury confirmed yesterday. It is thought that the Chancellor will unveil his plans to cut the growing public deficit by 50% over the next 5 years.
Umbrella companies are already bracing themselves for the proposed rise in National Insurance Contributions. Many people expect a similar increase in personal income tax and possibly small companies corporation tax from April 2010.
There is now increased speculation in the media that the election will take place on May 6th, the same date as the local council elections.
In a speech yesterday morning Gordon Brown warned Britain of economic “bumps in the road” ahead and stressed that the public sector had to become more efficient. He also said that senior civil servants would be subjected to the same pay freeze that has already been imposed on government ministers.
The Prime Minister believes that we are weathering the storm and stated that he will not let the British people down. The Tories on the other hand believe that keeping Brown and his government in power will seriously damage the UK’s prospects of making a full economic recovery. They have already stated that, if elected, they will seek to abolish IR35 and take a second look at proposals for the Agency Workers Directive which is set to have a devastating impact on umbrella companies and contractors alike.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: Calender by i_yudai
