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| Budget 2012: Liam Fox calls for business tax cuts | Budget 2012: Liam Fox calls for business tax cuts |
| (about 1 hour later) | |
| Liam Fox has called on Chancellor George Osborne to ease the tax burden on business in next month's Budget. | Liam Fox has called on Chancellor George Osborne to ease the tax burden on business in next month's Budget. |
| The former defence secretary also wants changes to the labour market to make it easier to hire and fire employees. | The former defence secretary also wants changes to the labour market to make it easier to hire and fire employees. |
| Writing in the >FT, the Conservative argued for further public spending cuts to fund employment tax reductions. | |
| It is Mr Fox's first major political intervention since he resigned from the cabinet four months ago over his relationship with friend Adam Werritty. | |
| His call comes as business group the CBI has separately urged the government to give a £500m boost to business in the 21 March Budget, through a series of "targeted and modest" tax cuts. | His call comes as business group the CBI has separately urged the government to give a £500m boost to business in the 21 March Budget, through a series of "targeted and modest" tax cuts. |
| In its submission to the Treasury, the CBI called on the chancellor to deliver "Plan A plus" to bolster growth and investment. | In its submission to the Treasury, the CBI called on the chancellor to deliver "Plan A plus" to bolster growth and investment. |
| In the FT, Mr Fox said it was "intellectually unsustainable" that employment rights should stay untouched in the current economic climate. | In the FT, Mr Fox said it was "intellectually unsustainable" that employment rights should stay untouched in the current economic climate. |
| In his most significant foray into front-line politics since his resignation last October, he called for employers' national insurance contributions to be cut across the board. | In his most significant foray into front-line politics since his resignation last October, he called for employers' national insurance contributions to be cut across the board. |
| 'Clearly cyclical' | 'Clearly cyclical' |
| Mr Fox wrote: "To restore competitiveness we must begin by deregulating the labour market. Political objections must be overridden. | Mr Fox wrote: "To restore competitiveness we must begin by deregulating the labour market. Political objections must be overridden. |
| "It is too difficult to hire and fire, and too expensive to take on new employees. | "It is too difficult to hire and fire, and too expensive to take on new employees. |
| "It is intellectually unsustainable to believe that workplace rights should remain untouchable while output and employment are clearly cyclical." | "It is intellectually unsustainable to believe that workplace rights should remain untouchable while output and employment are clearly cyclical." |
| He added: "There is a strong argument for further public spending reductions - not to fund a faster reduction in the deficit, but to reduce taxes on employment. | He added: "There is a strong argument for further public spending reductions - not to fund a faster reduction in the deficit, but to reduce taxes on employment. |
| "Although the coalition agreement may require the chancellor to raise personal tax allowances, he should use the proceeds of spending reductions to cut employers' national insurance contributions across the board. | "Although the coalition agreement may require the chancellor to raise personal tax allowances, he should use the proceeds of spending reductions to cut employers' national insurance contributions across the board. |
| "If that is deemed impossible, he should consider targeting such tax cuts on the employment of 16 to 24-year-olds, making them more attractive to employers." | "If that is deemed impossible, he should consider targeting such tax cuts on the employment of 16 to 24-year-olds, making them more attractive to employers." |
| BBC political correspondent Iain Watson says Mr Fox has gone on the attack - ostensibly his message is aimed at those on the left who oppose further deregulation of the labour market. | BBC political correspondent Iain Watson says Mr Fox has gone on the attack - ostensibly his message is aimed at those on the left who oppose further deregulation of the labour market. |
| But he is also issuing a rallying cry for Conservative MPs, particularly those on the right of the party, who want the chancellor to cut business taxes in the Budget, our correspondent adds. | But he is also issuing a rallying cry for Conservative MPs, particularly those on the right of the party, who want the chancellor to cut business taxes in the Budget, our correspondent adds. |
| 'Plan A plus' | 'Plan A plus' |
| CBI director general John Cridland said of its call: "The chancellor must use this Budget to score the growth and investment policy goals he put forward in his Autumn Statement. | CBI director general John Cridland said of its call: "The chancellor must use this Budget to score the growth and investment policy goals he put forward in his Autumn Statement. |
| "With our economy firmly under the international spotlight, there is no time to lose: Plan A plus must become a reality." | "With our economy firmly under the international spotlight, there is no time to lose: Plan A plus must become a reality." |
| On Sunday, shadow chancellor Ed Balls called for "decisive action" to boost economic growth and offered suggestions for tax cuts in the Budget. | On Sunday, shadow chancellor Ed Balls called for "decisive action" to boost economic growth and offered suggestions for tax cuts in the Budget. |
| Mr Balls' ideas include a VAT cut, a 3p income tax cut for a year, bringing forward the planned personal allowance rise to £10,000 and higher tax credits. | Mr Balls' ideas include a VAT cut, a 3p income tax cut for a year, bringing forward the planned personal allowance rise to £10,000 and higher tax credits. |
| No tax cut could mean "a permanent dent in our nation's prosperity", he said. | No tax cut could mean "a permanent dent in our nation's prosperity", he said. |
| The Conservatives responded by saying excessive borrowing and debt under Labour had led to the current financial mess. | The Conservatives responded by saying excessive borrowing and debt under Labour had led to the current financial mess. |