A FINANCE BLOG ,YOU CAN TRUST
By Jean paul ndindamahina, 08th May2015.
UK Prime Minister David Cameron who has held office of number 10 since 2010 has re-elected with majority vote in 2015 general election. Winning by majority vote, means that Cameron will not look at no one else when making his key political decision and it means that the promises he made before election will be delivered without any hindrance but the question is how and who is going to benefit from his re-election?
In the next two years, those who are struggling to find a work may feel no difference but those with jobs, the benefit will start in 2016 when the tax code is amended and that include 10600 year for taxable personal allowances and that means that those on minimum wage working full time will have to pay little or no tax at all.
For example: those who work 37 hrs a weak on £7.50p (As promised to be new minimum wage) will only pay £14.60p in tax per week and only £58.40p in tax per month and this is a huge saving compared to the same hard working family in 2008 who worked same hours with same rate of pay where £29.8p in tax per week and £119.20P in tax per months were being collected and leaving almost nothing in the pocket of those who work or who worked hard.
Another benefit is that with social benefit being made hard to access, it means that more people are going to have more needs in finding jobs and they will have to put more effort in doing so which is totally different to prior 2010 where those who worked did not feel much difference from those who were not working and this is one behaviour that slowed the economy down because some employees did not try hard as they would now to keep their job. Since 2010, with people wanting to get into jobs market, crime rate has reduced as more people do want to clear their criminal records that prevent them from getting employment.
With 4 years’ work for immigrants before claiming tax benefits including child and working tax benefit will curb down immigrations coming to the UK as most of them would find it hard to live in UK without employment. However, it is uncertain if any referendum to leave European Union as Cameron has promised will pass if it does, it may hurt UK businesses as trade between UK and other European countries may be toughened and British businesses may find it harder to do cross border trade which would hurt their business growth.
Parents will benefit from 30 hrs free childcare a weak and that means giving hard working parents more time to focus and concentrate on their work and it means that more children will benefit from having a good schooling start which would help them in later years in education.
All eyes are on David Cameron on how he is going to deliver what he promised during election campaign and the next five years will prove him right or wrong.
Jean Paul Ndindamahina