JudyHon
24th April 2009, 17:09
IMMIGRATION MATTERS
UK BUDGET AND JOBS REPORT
Tax increase on high earners could see British brain drain
24 April 2009
The Times reports this week that the new 50% tax rate on high earners, announced by Alistair Darling in his second Budget as Chancellor, could herald a 1970s-style brain drain.
Mr Darling admitted that net public sector borrowing would hit a massive £175 billion this year, and total national debt would peak at almost 80 per cent of GDP.
The Chancellor said that those earning more than £150,000 a year would be taxed at 50p in the pound from next April, up from 40p. Those earning more than £100,000 a year will lose all personal allowances, significantly increasing the tax bills of thousands of professionals, including doctors and head teachers.
The tax hike brought immediate warnings from the City that highly-paid individuals would move to countries with more progressive tax regimes, like Ireland or Switzerland, as happened under Labour in the 1970s when the top rate of tax hit 83 per cent.
The UK economy contracted by 1.6 per cent in the last quarter of 2008 and would have declined by a similar amount in the first three months of this year.
The Chancellor is confident that the British economy will suffer less than Germany, Japan, Italy, and the Euro area as a whole this year. The British economy is diverse, flexible and resilient - which is why we can be confident in recovery."
Mr Darling announced a £3 billion package of measures to help the jobless back into work and prevent those who lose their jobs becoming long-term unemployed. He also announced £1 billion in funding to help fight climate change, £2.5 billion to help businesses invest in high-technology jobs and £500 million to kickstart stalled housing projects.
He also announced a £750 million strategic investment fund, which he said would help to unblock as much as £50 billion in new business investment this year, including £10 billion in the communication sector.
The Government will also contribute £300 million towards a "scrappage" scheme under which motorists can claim £2,000 towards a new car or van if they trade in a vehicle that is at least ten years old.
For a full budget report including UK tax rates see the BBC website.
Despite higher unemployment levels, demand for staff in areas affecting migrant workers, such as the care sector, remains strong, with Care Home employers still reporting shortages of Care Assistants and Nurses.
If you need help with sponsorship, immigration advice or an appeal against a refusal, please email:
info@immigrationmatters.co.uk or visit http://www.immigrationmatters.co.uk/
Other Immigration Matters stories:
Borders, Citizenship and Immigration Bill passes through the Lords
Borders Bill completed its passage through the Lords with little incident.
'Risky' UK student visa applicants interviewed by ECO's over the phone
Student visa applicants from Pakistan are being interviewed over the telephone from outside the country when there are concerns they might be "risky".
Terror raid suspects face deportation after being released without charge
Nine Pakistani nationals arrested over a suspected bomb plot in the UK have been released without charge by police, but still face being deported.
New Tier 2 Policy Guidance effective 31 March 2009
Important change to Tier 2 Entry Clearance and Leave to Remain applications, which came into effect on 31 March.
NVQ student wins visa appeal at AIT
Student wins her appeal at the AIT (Asylum and Immigration Tribunal) against her 2007 entry clearance refusal in Manila.
UK BUDGET AND JOBS REPORT
Tax increase on high earners could see British brain drain
24 April 2009
The Times reports this week that the new 50% tax rate on high earners, announced by Alistair Darling in his second Budget as Chancellor, could herald a 1970s-style brain drain.
Mr Darling admitted that net public sector borrowing would hit a massive £175 billion this year, and total national debt would peak at almost 80 per cent of GDP.
The Chancellor said that those earning more than £150,000 a year would be taxed at 50p in the pound from next April, up from 40p. Those earning more than £100,000 a year will lose all personal allowances, significantly increasing the tax bills of thousands of professionals, including doctors and head teachers.
The tax hike brought immediate warnings from the City that highly-paid individuals would move to countries with more progressive tax regimes, like Ireland or Switzerland, as happened under Labour in the 1970s when the top rate of tax hit 83 per cent.
The UK economy contracted by 1.6 per cent in the last quarter of 2008 and would have declined by a similar amount in the first three months of this year.
The Chancellor is confident that the British economy will suffer less than Germany, Japan, Italy, and the Euro area as a whole this year. The British economy is diverse, flexible and resilient - which is why we can be confident in recovery."
Mr Darling announced a £3 billion package of measures to help the jobless back into work and prevent those who lose their jobs becoming long-term unemployed. He also announced £1 billion in funding to help fight climate change, £2.5 billion to help businesses invest in high-technology jobs and £500 million to kickstart stalled housing projects.
He also announced a £750 million strategic investment fund, which he said would help to unblock as much as £50 billion in new business investment this year, including £10 billion in the communication sector.
The Government will also contribute £300 million towards a "scrappage" scheme under which motorists can claim £2,000 towards a new car or van if they trade in a vehicle that is at least ten years old.
For a full budget report including UK tax rates see the BBC website.
Despite higher unemployment levels, demand for staff in areas affecting migrant workers, such as the care sector, remains strong, with Care Home employers still reporting shortages of Care Assistants and Nurses.
If you need help with sponsorship, immigration advice or an appeal against a refusal, please email:
info@immigrationmatters.co.uk or visit http://www.immigrationmatters.co.uk/
Other Immigration Matters stories:
Borders, Citizenship and Immigration Bill passes through the Lords
Borders Bill completed its passage through the Lords with little incident.
'Risky' UK student visa applicants interviewed by ECO's over the phone
Student visa applicants from Pakistan are being interviewed over the telephone from outside the country when there are concerns they might be "risky".
Terror raid suspects face deportation after being released without charge
Nine Pakistani nationals arrested over a suspected bomb plot in the UK have been released without charge by police, but still face being deported.
New Tier 2 Policy Guidance effective 31 March 2009
Important change to Tier 2 Entry Clearance and Leave to Remain applications, which came into effect on 31 March.
NVQ student wins visa appeal at AIT
Student wins her appeal at the AIT (Asylum and Immigration Tribunal) against her 2007 entry clearance refusal in Manila.