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Conservatives plan employer tax cut to create 60,000 jobs

Shadow Chancellor George Osborne has announced plans to create 60,000 new jobs at the start of a new Tory Government by cutting taxes on employment.

At the party’s Manchester conference, he said: “Any new business created in the first two years of a Conservative Government will pay no tax on the new people they employ.

“We will waive employer national insurance on the first 10 people created in any new business.

“We reckon this will create 60,000 new jobs in the first period of a new Government.”

The message would be: “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.”

Mr Osborne said the tax cut would be funded by savings to be announced during the remainder of the conference.

In the North East, the Federation of Small Businesses (FSB) welcomed the proposals.

Simon Hanson, North East Policy Manager for the FSB said: “Since 2002 small businesses have created over 80 per cent of all new jobs. This proposal will help to create and grow more small businesses that will serve as a catalyst for economic recovery.

“It is reassuring to see that the Conservatives recognise the link between lower payroll taxes and job creation. The FSB will now campaign to ensure that this logic is extended to existing businesses, over 40 per cent of which would take on staff if payroll taxes were lower.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .