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To help build an economy that works for the West Midlands, the Budget announces:
A Regional Growth Fund will operate in England and support proposals from private and public-private bodies that create sustainable increases in business employment and growth.
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. Up to 55,000 businesses in the West Midlands could benefit.
The impact of the employer NICs rate rise previously announced will be largely reversed. This will lead to a saving of around £280 million in the West Midlands.
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 3,900 individuals in the West Midlands who receive an income from furnished holiday lettings.
The Income Tax personal allowance for those aged under 65 will be increased by £1,000 in cash terms, taking it from £6,475 in 2010-11 to £7,475 in 2011-12. In the West Midlands over 2 million basic rate taxpayers will gain by up to £170 from this measure.
The Government will increase the basic State Pension in April 2011 by the equivalent of Retail Price Index. This will benefit 1.1 million pensioners in the West Midlands.
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 the West Midlands, will be set out on 20 October.
In the West Midlands in the latest reported full year, 2008:
The latest labour market figures for the West Midlands, from the three months to April 2010 , show: