Pre-Budget update 9

Dec 9 2009 By Andrew Mernin

Senior civil service pay bill to be cut by up to £100 million over three years and any new government appointment over £150,000 and all bonuses over £50,000 to require Treasury approval.

All public sector pay settlements capped at 1% for two years from 2011, while recognising the special circumstances of the armed forces.

Extra £2.5 billion to be set aside next year for military operations in Afghanistan.

£5 million allocated to help ex-service personnel set up their own businesses.

All employer, employee and self-employed rates of National Insurance to rise by a further 0.5% from April 2011.