Published:

65 comments

So the BBC is reporting:

"The Tories will call for a cut in the amount companies pay in national insurance to help them take on staff who have been jobless for three months. The Tories say the measure will reduce firms’ tax burden by £2.6bn and create 350,000 new jobs in the next year."

Our understanding is that George Osborne will say that the tax cut will be funded by the reduction in unemployment it will help deliver.  (8.20am: In a confident performance on the Today programme Mr Cameron said that the tax cut will be worth £2,500 to every firm that takes on someone who has been unemployed for three months and will save £8,000 in every year in the way of saved unemployment benefit).

David Cameron is addressing a press conference at 8.30am. We’ll post more after that.

Channel 4 helpfully listed the other tax changes previously announced by the Conservatives:

  1. A two year freeze in council tax;
  2. A six month VAT holiday for small businesses;
  3. 1p NI cut for very small firms;
  4. A reduction in corporation tax funded by an elimination of allowances;
  5. Abolition of inheritance tax – except for millionaires – paid for by a tax on non-doms;
  6. The end of stamp duty for nine out of ten first-time buyers;
  7. Lower fuel duty when oil prices are higher, higher fuel duty when prices fall;
  8. Full opposition to Labour’s planned increase to Vehicle Excise Duty;
  9. Lower taxes on families funded by higher green taxes – both yet unspecified.

Image001
8.45am:
CCHQ has just released this (PDF) document
(and logo) which outlines the conditions attached to the tax relief.

65 comments for: Tories to announce £2.6bn tax cut for businesses

Leave a Reply

You must be logged in to post a comment.