What the election result means for you

  20th May 2015      
 Company News

By Suzi Dixon, Community Editor

Join our group on LinkedIn and tell us — do you think the Conservatives are the best party to support business growth?

The Conservatives have a clear majority in the Commons — so what does that mean? In theory, it means they will stick to the pledges made before the General Election and implement the policies that people voted for, According to the Conservative manifesto, we can expect the following in Dorset and Hampshire in the coming months…

FOR BUSINESSES David Cameron has promised to help businesses create two million new jobs, encouraging firms to pay the living wage when they can afford it. In return, they have promised to tighten rules on strike ballots to help businesses keep going even when times are tough.

There are also a host of tax cuts described in our previous blog that support British businesses.

FOR EMPLOYEES Cameron promises no increases in VAT, income tax rates or national insurance rates. The Conservatives promises that no one on minimum wage will have to pay income tax; coupled with a further cut to the Universal Credit cap, it is clear Cameron and co are serious about encouraging people to work, rather than rely on the welfare state. As we explained in another previous blog, the current minimum wage rises to £6.70 an hour from October 2015, which equates to £12,194 a year on a 35-hour week, or £13,936 for someone working 40 hours a week.

But it’s not just those on low wages who will benefit — the personal tax allowance will be raised to £12,500 by 2020 and, to reward those who have worked their way up to management, the 40% tax rate threshold will be raised to £50,000.

FOR FAMILIES The big news for families is that the amount of free childcare will double – 30 hours of free childcare will be available for parents of three- and four-year-olds – double the current 15 hours and worth up to about £5,000 a year for working parents. This is brilliant for getting both mum AND dad back to work if they want to. No wonder Cameron has declared that the Conservatives are “the party of working people”.

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