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| Version 1 | Version 2 |
|---|---|
| Tories plan tax cut for new firms | Tories plan tax cut for new firms |
| (about 1 hour later) | |
| George Osborne has announced plans for a tax break for new firms which he says would create 60,000 new jobs. | George Osborne has announced plans for a tax break for new firms which he says would create 60,000 new jobs. |
| Any business created in the first two years of a Tory government would pay no employer National Insurance on its first 10 employees, he said. | Any business created in the first two years of a Tory government would pay no employer National Insurance on its first 10 employees, he said. |
| The shadow chancellor said it would be funded by savings to be announced and would be "a huge boost to enterprise". | |
| Labour dismissed the tax break as a "gimmick" while the Lib Dems said it would "undercut" existing companies. | |
| Speaking at the Conservative Party conference in Manchester, Mr Osborne said it would send the message: "Invest here, set up your business here, come and make your enterprise here and we will support you. We will send a message loud and clear that this country is open for business." | Speaking at the Conservative Party conference in Manchester, Mr Osborne said it would send the message: "Invest here, set up your business here, come and make your enterprise here and we will support you. We will send a message loud and clear that this country is open for business." |
| Welfare reform | |
| Aides said the exemption would apply to the first 10 employees hired by a business during its first year, up to an earning limit of £844 a week per employee, or about £44,000 a year. | |
| For a new small business with 10 employees on an average salary of £25,000, Mr Osborne calculates this could save up to £25,000 a year. | |
| The bills are racking up. George Osborne must tell us how he'll pay for them all." Liam ByrneChief Secretary to the Treasury We need strong mandate - Cameron | |
| The measure was announced as party leader David Cameron pledged the "biggest, boldest programme to get Britain working that this country has ever seen" as the Tories outlined plans for a welfare shake up to get many incapacity benefit claimants back to work. | |
| John Cridland, head of the CBI business group, welcomed the proposal saying: "Many business people are put off hiring their first employee by the sheer level of taxes and red tape, particularly at this time. | |
| "This proposal should help new firms take bolder steps in creating jobs, and would give a much-needed boost to UK entrepreneurs looking to grow a business." | |
| And the Federation of Small Businesses said it would help to create and grow more small businesses to serve as "a catalyst for economic recovery". | |
| But Labour said it was not clear how the tax break would be paid for. | |
| "The bills are racking up," Chief Secretary to the Treasury Liam Byrne said. "George Osborne must tell us how he'll pay for them all." | |
| Vince Cable, the Lib Dems' Treasury spokesman, said: "The numbers Mr Osborne thinks this policy would help seem to have been plucked out of thin air. | |
| "Many small businessmen will be shocked to learn that the Tories believe a start-up business has a wage bill of £250,000. | |
| "What is most worrying is that this tax break for new businesses would mean that they will be able to undercut existing small companies who are already struggling." | "What is most worrying is that this tax break for new businesses would mean that they will be able to undercut existing small companies who are already struggling." |