The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Insurance Premium Tax (IPT) The standard rate of IPT will rise from 10% to 12% from 1 June 2017. IPT is a tax on insurers, so any impact on premiums depends on insurers’ commercial decisions as to whether they pass the cost of this rate increase directly on to their customers.
Universal Credit
Universal Credit taper The current taper rate of 65% means that once claimants earn above the work allowances in Universal Credit, their income will be withdrawn at a rate of 65 pence for every extra £1 earned. From April 2017, the taper rate that applies in Universal Credit will be reduced from 65% to 63%. This will let individuals keep more of what they earn and strengthen the incentive for individuals to progress in work. Universal Credit roll out The Autumn Statement provides funding for the welfare announcement made by the Secretary of State for the Department for Work and Pensions (DWP) on 20 July 2016, which included policy changes and revisions to the Universal Credit roll out schedule. Block grants As a result of spending decisions taken by the UK government at the Autumn Statement, the application of the Barnett formula will provide each of the devolved administrations with additional funding to be allocated according to their own priorities. The Scottish Government’s block grant will be further adjusted to reflect its tax powers as agreed in the Scottish Government’s Fiscal Framework. Scotland The government will work with local partners and the Scottish Government towards a city deal for Stirling. The government has confirmed funding for city deals in Aberdeen and Inverness, is making progress towards a deal with Edinburgh, and will consider proposals for a deal with the Tay cities once they are brought forward, meaning all Scottish cities have the opportunity to agree a city deal. The government is also continuing to work with the Scottish Government to implement the Scottish Government’s fiscal framework and new powers set out in the Scotland Act 2016. Wales The government is making good progress in discussions with local partners and the Welsh Government on a city deal for the Swansea Bay City Region. It will also consider options for a growth deal in north Wales and looks forward to receiving proposals from local partners. The government is also continuing to support the implementation of the £1.2 billion city deal for the Cardiff Capital Region, which was agreed in March. Northern Ireland The government continues to work closely with the Northern Ireland Executive towards the introduction of a Northern Ireland rate of Corporation Tax, subject to the Northern Ireland Executive demonstrating it has placed its finances on a sustainable footing. Devolved administrations
Digital communications
The government will invest over £1 billion by 2020-21, including £740 million through the National Productivity Investment Fund (NPIF), targeted at supporting the market to roll out full-fibre connections and future 5G communications. This will bring faster and more reliable broadband for homes and businesses across the UK, boost the next generation of mobile connectivity and keep the UK in the forefront of the development of the ‘Internet of Things’.
This will be delivered through:
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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