How the Budget will affect HR

With George Osborne having now announced the Budget, we take a look at how the proposals will be affecting HR.

Wages

A new national living wage will be introduced. It will apply to over-25s. It will start next year at £7.20, rising to £9 by 2020. The Office for Budget Responsibility (OBR) claims this will have only a “fractional” effect on jobs. Whilst, by 2020, there will be 60,000 fewer jobs as a result., however overall jobs will go up.

The OBR says this will affect just one per cent of corporate profits. But corporation tax is going down.