Spending Review
SPENDING REVIEW ANNOUNCES THE END OF THE AUTOMATIC PAY INCREASE
26 June 2013
Parliament have been listening to the Chancellor of the Exchequer as he details the outcome of the latest spending review.
The chancellor has announced spending cuts for 2015/16 that have been “forced on him by slower than expected economic growth and deficit reduction” reports the BBC
BBC News reports that briefing MPs on the plans, which will kick in just before the election, Mr Osborne insisted the economy was on the right track, saying: "Britain is moving out of intensive care and moving from rescue to recovery."
Further job cuts
He said the cuts would be done in a fair way and would boost growth. Reforms such as ending "progression pay" in favour of performance-related increases would ease the pain.
"Progression pay can at best be described as antiquated; at worst, it's deeply unfair to other parts of the public sector who don't get it and to the private sector who have to pay for it.
"So we will end automatic progression pay in the Civil Service by 2015-16.
"And we are working to remove automatic pay rises simply for time served in our schools, NHS, prisons and police.
"The armed forces will be excluded from these reforms.
"Keeping pay awards down and ending automatic progression pay means that, for every pound we have to save in central administration, we can better limit job losses."
THE SPENDING REVIEW IN MORE DETAIL
28 June 2013
It has been two days since the Chancellor announced his Spending Review to Parliament, and whilst we know that many more cuts will follow as a result, which of these cuts will affect those of us working in payroll? Depending on your business sector, you may be affected by any one of the measures announced by George Osborne, however those having most widespread effect on CIPP members include:
The Treasury’s budget has been reduced by 10%. The Treasury instigates many of the projects and plans affecting HMRC and business.
HMRC’s budget has been reduced by 5%, however the government remains committed to increasing HMRC’s resource to tackle tax evasion in the expectation that it can raise over £1bn in tax revenues from those who try to avoid paying their fair share.
The Department for Business, Innovation and Skills (BIS) is responsible for implementing many workplace reforms, such as the forthcoming introduction of
CIPP Policy News Journal
16/04/2014, Page 52 of 519
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