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To help build an economy that works for Northern Ireland, the Budget announces:
A new three-year scheme will exempt new businesses from up to £5,000 of employer National Insurance Contributions (NICs). Any new business set up from 22 June which meets the criteria set out in the forthcoming announcement will benefit from the scheme. Over 15,000 businesses in Northern Ireland will benefit.
The impact of the employer NICs rate rise previously announced will be largely reversed. This will lead to a saving of around £80 million in Northern Ireland.
The Budget 2009 proposal to repeal the special tax rules for furnished holiday lettings will not be implemented. Instead, the Government will consult over the summer on an alternative proposal. This will benefit an estimated 800 individuals in Northern Ireland who have income from furnished holiday lettings.
The Income Tax personal allowance for those aged under 65 will be increased by £1000 in cash terms, taking it from £6475 in 2010-11 to £7475 in 2011-12. In Northern Ireland over 600,000 basic rate taxpayers will gain from this measure.
The Budget sets out the path that the Government will take for reducing spending over the course of this Parliament. Full details of the Spending Review, which will have implications for Northern Ireland, will be set out on 20 October.
In Northern Ireland in the latest reported full year, 2008:
The latest labour market figures for Northern Ireland, from the three months to April 2010 , show: