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A surprise Tory tax cut designed to generate 60,000 jobs was unveiled today.
George Osborne pledged that new firms will be exempted from paying National Insurance on the first 10 employees, saving about £25,000 a year, while encouraging entrepreneurs to create jobs in slump-hit Britain.
The announcement on the opening day of the Conservative conference in Manchester delighted activists yearning for a totemic return to the years of Tory tax-cutting. But unlike the shadow chancellor's promise two years ago to abolish inheritance tax on all estates below £1 million, today's move was designed to lay siege to Labour's claim to be the only party with answers on beating the recession and reducing unemployment.
It was announced under the slogan “Get Britain Working” at the same time as plans to slash incapacity benefit for people capable of working. There were also plans for a big expansion of apprenticeships and the creation of new technical schools.
Mr Osborne said: “Getting Britain working will be a top priority for the next Conservative government. We have to end Labour's jobs crisis, which has left one in five young people unable to find work.”
He said real jobs created by private businesses were the solution to mass unemployment. Under his proposal, any new business started in the first two years of a Tory administration would pay no National Insurance on the first 10 employees hired during its first year trading.
“This will create around 60,000 new jobs that would otherwise not be created,” Mr Osborne said. “This is another example of the Conservatives being the party of jobs at a time when Labour are the party of mass unemployment.”
There was no detail from him as to how the package, estimated to cost £250 million a year, would be funded. Senior aides said Mr Osborne would spell out where the money would come from in his main keynote speech to the party conference tomorrow.
Reader views (14)
Osborne has to do very, very little to deliver spending cuts. All he has to do is freeze public sector wages and all hiring.
The 60,000 jobs pledge looks to the end of 2010 and the reduction in employer NI is a rational incentive to those looking to hire staff. The idea that this is a zero sum game is wrong. There will be some recovery in the economy particularly given the weakness of the pound so the doomsters have got it wrong. What troubles me is the lack of ambition in this jobs plan. I would like to see Osbourne saying he wants to get Britain back to work and come up with a plan that bolsters British business confidence, helps small business, get red tape from Elf n safety plus Euro Sclerosis off their backs, lower taxes. What sane person wants to risk capital for the reward of punitive direct and indirect taxes? When 70% of the work force is employed by the State in Wales, Scotland and NE England its time to wake up and smell the coffee!
- James Macleod Ritchie, Oyster Bay Cove
If things are as bad as the Tories are trying to make out why are they offering tax cuts be it this whimper or the Inheritence tax Big Whopper!!
As for those on Incapacity Benefit their doctors have to state they are unfit to work but as usual the tories like to pick on the weakest in society.
So no mention of stopping tax loopholes for millionaire bankers and businessmen then!
- Melvyn Windebank, Canvey Island, Essex
OK, but where and what are these mystical jobs? Haven't they noticed that the dole queues continue to grow.
- Robert Thornton, Malaga, Spain
What will happen to the other four million people who are currently out of work?,will they be entered into a lottery or have to buy a scratchcard?,pure fantasy Osborne,more Ozzy than George, akin to sticking a band aid plaster onto a severed limb.
- General Lee' Wright, Planet Tesco
Just like Boris's pledge to get rid of the Congestion Charge - it's all - Inspirational - So it will never happen!!
- Sharon40, Woolwich
Those 60 000 jobs created should balance out the 60 000 jobs lost through Tory cuts.
- Dhan Raj, Basildon
The problem with reaccessing the merits of 2.5 million Incapacity claimants is that it requires additional highly qualified Doctors and civil servants to carry out the work properly. If as I suspect the tories would opt for a cheaper 'box ticking' exercise then the injustice will occur with the media backlash.
However tempting cutting £25 off a claimants income may seem given that we are in the deepest recession since the 1930's it seems a best tackless and at worst reckless. While banks and bankers have been bailed out to the tune of £175 bn and rising to then go after the most vulnrable and marginalised will lead to social unrest.
This policy is typical of the public school thinking and is sure to be followed by more cutbacks in education, health. Even bungling Boris slashed £3bn from the investment in Londons crumbling transport investment programme at a time of recession, someting that Londner's will not forget at the next election.
- Sam, London,UK
Yay, another Tory tax cut to entice the small business man to vote for them, so the small business man can offer even more McJobs (although that's an insult to McD's) on the Minimum Wage. And then expect to see the Minimum Wage abolished to put even more money in the pockets of the would-be millionaires...
- Blue Baby, London
And how are these cuts going to be financed? More tory bull to go alongside the labour bull. Is there any party worth voting for nowadays that does not live in a fantasy world?
- Dom, London
I have written to George to congratulate him, and asked him for his formula,as I intend to copy that formula,I intend informing my Wife that I wish to have the same excellent meals she has given me of late,but I am to give her less housekeeping allowance.
- Barry, Chelsea
Presumably these 60,000 jobs will replace those lost by the axing of thousands of NHS jobs. Is this the New Deal from the Conservatives, give with one hand and take with the other. Who will make up the shortfall on the employer's element of the employee's NI contribution? Where will the money come from? What new business will even employ 10 people in its first year? The Conservatives have very short memories. They seem to forget the millions of people they left languishing on the dole and on Margaret Thatcher's creation, Incapacity Benefit. Most of those people have been unemployed for a generation thanks to the 18 years of Conservative government. Under this Labour government, unemployment was reducing month on month until the recession. Even now considered opinion doesn't expect it to reach 3m. Like most of the Conservative new ideas, or at least those they haven't borrowed from the government, this one hasn't been costed or thought through. Must try harder, George.
- Val Daniels, Mijas Costa, Spain
With EU membership of £9B and Foreign Aid Package of £14B promised to the party faithfull, Alice didn't need to drop Acid afterall.
- William, Hay~Heath UK
But let's be honest, we all know that the Tories won't be able to cut taxes at all. it is what their supporters want to hear but isn't fact at all. It is like Exeter fane being told that Mourinho is going to be their next manager. Pure fantasy
- Keith Price, Luton England
And more POCKET MONEY ?
- Bernard Parke, GUILDFORD
