Budget 2015 roundup and industry reaction

Chancellor George Osborne has laid bare the details of his budget for the "working people", but how does the first pure Tory budget in a long, long time affect working businesses?

As the BBC reports, the Chancellor is clamping down on the tax front, and by tightening things up in terms of tax avoidance and tax evasion, Osborne expects to raise no less than £7.2 billion – a fair chunk for the coffers indeed.

Also, he's put an end to those staying in the UK and keeping non-Dom status, and from 2017, anyone who has lived in this country for 15 out of the last 20 years will be subject to the same taxation level as a permanent UK citizen.

The banking industry will feel the pinch too, with an 8 per cent surcharge on bank profits set to come into play at the start of next year.

As for corporation tax, there’s a big move on that front – this will be ratcheted down on the run up to the end of the decade. Osborne announced that it will be reduced to 19 per cent come 2017, dropping further to 18 per cent when 2020 arrives. That’s one of the lowest rates going when it comes to developed nations, and is sure to be a big pleaser in the world of big business.

National Insurance Employment Allowance is going to rise from £2000 to £3000 as of next April, which will save employers a chunk of cash.

Finally, a new national living wage has also been introduced for those in employment aged 25 or over, stipulating a minimum of £7.20 per hour, and coming into force next spring. Public sector pay is also set to rise by 1 per cent every year, over the next four years heading to the end of the decade.

Back in March, when Osborne revealed his 2015 budget plan, he predicted that the UK economy would surpass Germany by the year 2030. He also pledged investment for the Internet of Things, public Wi-Fi, and £100 million to push forward with self-driving cars.

Industry reaction