When a new Prime Minister comes in it is expected that they shake things up and put forward ideas that they are passionate about.
As Boris Johnson takes the helm of Number 10 Downing Street, he brings with him many pledges that he has made in his leadership bid.
In this blog we want to focus on 4 of these pledges that, if implemented, will directly impact business owners.
1. Boris Pledges To Raise The National Living Wage
The National Living Wage is for anyone who is aged 25 and over.
Right now the figure sits at £8.21 per hour, however Boris Johnson has pledged to increase this figure.
There has been no indication to what this figure will be increased to but, due to the announcement, it is expected to rise by more than inflation.
The National Living Wage is a legal requirement which means that this will impact business owners who have staff who are aged 25 and over.
2. Boris Pledges To Deliver Brexit, Even Without A Free Trade Agreement
Boris Johnson has made clear that he will deliver Brexit on October 31st, even if it there is No-Deal in place.
Writing in his column he addresses the Free Trade Agreement which would directly impact business owners buying and selling across the EU.
“In the context of the Free Trade Agreement that we will negotiate with the EU … after we have left on October 31st”.
The Free Trade Agreement is made between countries. It removes tariffs and other restrictions on ‘substantially all’ goods traded between them.
This means that there is a potential period of time where these tariffs and restrictions will apply to businesses in the event of a No-Deal Brexit.
3. Boris Pledges To Raise The Higher Income Tax Threshold
Once an individual is earning £50,000 a year, their tax is increased from 20% to 40% for anything over that amount.
It is estimated that around 12% of people in the UK fit into the higher income tax threshold and earn over £50,000 a year.
However, Boris has pledged to increase this threshold to £80,000.
This means that any business owner earning between £50,000 to £80,0000 per year will pay 20% tax, rather than 40%.
4. Boris Pledges Full Fibre Broadband Across The Nation By 2025
Full fibre broadband currently covers less than 10% of the nation. The government has already pledged to have full fibre broadband across the nation by 2033.
However, Boris has pledged to bring this deadline forward by 8 years, and have full nationwide coverage by 2025.
This would impact business owners who are based in smaller, rural towns and bring them high performing broadband connectivity.
It would also be a real boost to business owners who work whilst away on holiday in remote parts of the nation where broadband connections are usually poor.
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