Conservatives release business manifesto

The Conservative Party has today (Monday 21st May) released their business manifesto, promising to scrap red tape and a range of corporate taxes. The manifesto repeated the commitment to repeal IR35.

The manifesto, launched by William Hague and Michael Portillo, centres on pledges to cut both taxes and red tape with a promise that certain classes of regulation will be removed altogether for some small businesses. (Details of what classes are not yet available)

The manifesto is based on Tory tax cuts and the main points and commitments are:

- Business rates: British business taxes have risen by £5 billion pa since 1997 when the Government took office: two thirds of our tax advantage over Europe has been eroded.

- Over-regulation: British Chambers of Commerce estimate Labour has increased costs on business by £15 billion.

- Losing our competitive advantage: Britain has fallen from ninth to nineteenth place on the World Competitiveness Scoreboard since 1997."

- Freeing world trade: Campaign for tariff-free global free trade by 2020.

- Tax cuts for business: 6p a litre/27p a gallon off petrol and diesel; repeal IR35; increase ceiling for tax relief on share options from £30,000 to £100,000 for businesses up to a value of £100 million; reverse Climate Change Levy and Aggregates tax.

- Cutting red tape: establish an independent Deregulation Commission with powers to block excessive regulations.

- Helping small and medium-sized enterprises: cut in business rates by £200 million, exempting small firms from some classes of regulation altogether.

Asked in a later interview what Mr. Portillo would pick out of the manifesto in particular, the shadow chancellor told the Financial Times: "I would pick out the five economic disciplines, which provide the stability for the coming parliament, our commitment to making British business competitive, which means an agenda of cutting taxes and regulations, and specific proposals to abolish the climate change levy, aggregates tax, IR35, to cut business rates for very small businesses and to reform the working families tax credit."

Focusing more specifically on IR35, the shadow chancellor said, "We will repeal Labour's new tax on the self employed - IR35. This unfair tax is driving away some of our most creative people - IT specialists who are in great demand from our competitors."

The manifesto was backed by 144 leading businessmen including Sir Clive Thompson, former president of the Confederation of British Industry. In a letter to The Daily Telegraph they said that increased tax and regulations during a second Labour term would 'pose a significant risk to Britain's prosperity.'