Government publishes emergency budget

The policy team at Help the Hospices will be analysing the implications of the budget for hospices in the coming days and a briefing will shortly be available on the members area of the website.

Key points include:

• VAT to rise to 20% from January 2011.

• Personal income tax allowance to increase to £7475 in April 2011.

• Capital gains tax to increase to 28% for higher rate taxpayers with immediate effect.

• A shake up to the welfare system, intended to save £11bn by 2014/5.

• A two year public sector pay freeze for all those earning over £21,000.

• the threshold at which employers start to pay National Insurance will rise by the rate of inflation, plus £21 per week.

• Average real terms budget cuts of 25% over four years to departmental spending.  This amounts to £17bn by 2014/5. However, NHS spending (and International Development) is ring-fenced for the life of the current Parliament, with guaranteed real terms increases.