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Tories pledge £2,500 ‘carrot’ to give work to the jobless
Paul Waugh, Deputy Political Editor11 Nov 2008
DAVID CAMERON today called for immediate action to combat unemployment with a £2.6 billion business tax cut to get the jobless into work.
The Tory leader predicted that 350,000 jobs could be created next year if the Government adopted his “Keep Britain Working” plan to give firms a National Insurance holiday for every extra worker
they hire.
But a leading business chief warned that the plan would do nothing to help small business survive the downturn and said few firms wanted to recruit.
The Prime Minister claimed the proposals were “unfunded” and “not a serious” response to the wider need to kickstart the economy with direct help for families.
Unveiling his proposals today, Mr Cameron moved to distance himself from the Tories' association with mass unemployment of the Eighties and Nineties, rejecting for the first time Norman Lamont's infamous claim that “unemployment is a price worth paying” to keep inflation down.
He also signalled for the first time that he may dump his party's commitment to match Labour spending plans to 2011.
The Tory tax cut, worth up to £2,500 for every worker taken on, would only apply to those who had been unemployed for more than three months.
It would be “revenue neutral”, paid for by predicted savings in unemployment benefits.
The battle over tax cuts began in earnest amid renewed reports that Chancellor Alistair Darling is set to suspend plans to increase car tax. As revealed by the Standard in September, the Treasury is expected to use this month's pre-Budget report to delay retrospective moves to raise vehicle excise duty.
Mr Cameron said his proposals were based on a “very, very clear principle” that a government can only cut taxes if it can show to the public how they will be funded without massive borrowing.
He admitted that former Tory chancellors, including Norman Lamont, were advising him. But when asked if he agreed with Mr Lamont's remark on unemployment, he replied: “It is certainly something I have never said, nor would I say.”
Earlier, the Tory leader hinted he may drop his pledge to stick to Labour plans. He told BBC Breakfast: “Our approach has been to say that we will stick to their spending plans, but I have to say their spending plans seem to be completely up for grabs. They are in complete flux, complete
confusion.”
Gordon Brown dismissed the Tory plans, saying: “This is not a funded tax cut at all … The money is not there to pay for what is being proposed. It is not serious in measuring up to the problems we face.”
David Frost, of the British Chambers of Commerce, said: “Companies are not in a position to think about recruiting new staff right now. Businesses are shedding staff.”
Liberal Democrat leader Nick Clegg, who is proposing a 4p income tax cut, said: “These proposals are nothing more than schoolboy economics.”
Reader views (16)
I think David Cameron has found an old tory recipe book as was not a similar scheme tried before which lead to employers laying off staff so they could get paid to take on the unemployed?
His speech came on the day we remember what previous generation did to keep us free so if there were £2.5 billion going spare it would be better spent on increasing pensions and given the amount available backdating tne increase to when the tories removed the earnings link. (I bet just like mass emploment Dave has forgotten that.)
His speech came on the day we remember those who came home from war in 1918 and were promised "Homes fit for Heros" when all they got were the slums they left behind in 1914 and a un-changing Conservative party who following ANOTHER war opposed the introduction of the NHS.
Its just a pity that many pensioners who fought these wars have been denied a "Pension fit for Heros" and now most of them are either dead or to old to enjoy any amount paid now if it were available.
The advantage of increasing pensions is the money would be spent and thus re-boot the economy instead of being used to make the employed unemployed or funding house price inflation.
- Melvyn Windebank, Canvey Island, Essex, 11/11/2008 22:52
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There is nothing new in this - The DWP did this over 5 years ago with £1500 vouchers to take on an unemployed person .... it failed totally.
- Jim, Peterborough, 11/11/2008 21:54
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The Tories seem to find it so difficult to compliment Brown;s plans for combatting the credit crunch. Why is this? I thought the initiative was supposed to be cross-party.
- Keith Price, Luton, England, 11/11/2008 20:09
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Until the UK learns to COMPETE and add value we are sunk.
The public sector must shrink and the feckless must starve before this will happen because the citizens of our country have had it too soft and will have to learn the hard way.
When I compare what my grandparents went through with the present 'working age' population (many of whom do not really understand what work, added value, and productivity really is) I despair.
- Anglo, Sussex UK, 11/11/2008 17:35
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It's becoming weirder and weirder each day, just like Alice in Wonderland. I think I will stop looking at the TV news, or reading papers and even politicians comments on the Internet. As we rush into the surreal world of total non-reality pushed by our so called leaders, I as a taxpaying voter, wish to say I feel ashamed. How could we have handed so much power to so many freely elected idiots. We only have ourselves to blame. And Democracy is the victim.
- Bondy, London, 11/11/2008 17:20
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Surely the main object in combating the recession must be to stimulate business and try to preserve employment levels as much as possible. Brown has left no room for manoeuvre and, much as I would like personal taxes to be eased, I think priority must surely go to business and employment. What I truly dread is the thought of Brown and Darling borrowing and borrowing until we sink in a sea of debt with sterling falling through the floor. Their "clever" act of keeping loads of debt (PFI etc) off the books will be a very hollow joke then.
- James Elliott, Eastbourne UK, 11/11/2008 17:06
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- Tommy Cockles, Ealing England
Your comments are rich!! And I suppose nobody has lost out after 11 years of incompetent and 'dumbed down' loony labour government?? I can assure you the entire country has lost out as our economy and social fabric have been destroyed by Blair and the duplicitous Brown.
- Tom W, London, 11/11/2008 16:24
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So this is how the tories are going to beat the recession is it? A business tax cut, tax cut for what exactly? To take workers on for non existent jobs to fulfil empty order books.
- Brian, Wiltshire, 11/11/2008 15:43
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This is laughable, typical public school boy nonsense.
- Brian, Wiltshire, 11/11/2008 15:30
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I offer whatever you want,cheap fuel,lower taxe's,cheaper public transpor etc,etc, but then i'm not in Government.
- Raymond, London, 11/11/2008 15:16
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I realise that Gorgeous George Osborne, has now become a Gay Icon after his recent Bullingdon and shooting party pictures, but why doesn't he announce Tory Economic policies? I realise Dave Camoron misses the adulation of the Press but he should either let George make a statement or sack him. Is he the Tory version of Sarah Palin, not trusted to be let out alone?
- Arthur Atkins, Acton England, 11/11/2008 13:23
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Dave believes in bail outs for Banks and Taxpayers money for Business. Does he realise that neither of these, though dear to Tory hearts, actually vote. OAP's and low earners miss out on Tory benevolence again.
- Tommy Cockles, ealing England, 11/11/2008 13:18
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I am sure lots of firms would love to be in the position to hire people, not only to get the NI break but simply because it would mean their business is growing. Unfortunately, the global economy is such that firms will stay laying off people in their thousands. No amount of tax breaks will prevent this. What is needed is actual cash in the economy to stimulate spending either from the government in the form of public spending or via tax cuts so people have more money. However, we may find that even income tax cuts don't work since the sensible thing to do with the extra money would be to save it or pay off debts. The only hope in this case is that the British consumer has never been particularly sensible.
- Jonathan, London, 11/11/2008 11:30
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When will Gordon Brown realise that we do not want him to respond to this economic holocaust of his making by name-calling and a total lack of interest in listening to other people’s ideas?
Brown’s economic integrity has been irreversibly damaged by the credit crunch.
Ask yourself this: if a taxi driver gave you a lift to a restaurant on a night out and crashed a dozen times on the way (and still charged you the full fare), would you want that same taxi driver to give you a lift home?
Brown, for the good of the country, please call a general election now – if it doesn’t give you a mandate to lead, it will at least give the country the economic boost which always follows an election.
- St, London, 11/11/2008 11:01
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"But Labour claimed that the Tory plan sounded "suspiciously like a 'spend now and pay later'".
Who better to comment then Labour. That's exactly what Labour have been doing from day one only it's been spend, spend, spend, borrow, borrow, borrow and borrow with no pay later until totally UK PLC are bankrupt.
- Asw, Hong Kong, 11/11/2008 10:19
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The only kind of firm this is going to benefit is KFC and McDonalds who can still get some use out of people on the dole for three months or longer. People with actual skillsets and careers who find themselves unemployed for three months or more are pretty much dead in the water these days, especially with all the foreigners mopping up the jobs for a third of the going rate.
- Squiz, Islington, 11/11/2008 10:09
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