What the Conservatives propose to do for small businesses
With the Tory conference in full swing, what exactly do the Conservatives propose to do to help UK businesses, and how do they intend to deal with the reconstruction of the economy following the "credit crunch"?
Traditionally, the Conservatives have prided themselves on reducing public sector waste, lowering taxes, and encouraging the free market and entrepreneurism.
It would be hard to associate such actions with the current Labour party, who have massively increased red tape over the past decade, and presided over the current stepped increase in the small companies tax rate.
They have also been responsible for some of the most controversial (and ineffective) attempts at discouraging owner-managed and family businesses - in the form of IR35, and the currently delayed income shifting legislation. In a recent poll of 700 freelancers, just 1.8% said they would vote for Labour if a general election were called today.
On the other hand, it will be hard for the Tories to cut taxes as Treasury receipts will slump during an economic downturn, but they could save billions by cutting down on red tape and stifling regulations.
What the Conservatives Say
At the very top level, the Tories say they will:
- Cut corporation tax
- Reduce the burden of regulation on businesses
- Simplify employment law
- Overhaul business support schemes to give young people better advice
- Reform the Regional Development Agencies
- Strengthen UK Trade and Investment
Saving for a Rainy Day
In terms of pulling the UK out of its current financial mess, Shadow Chancellor, George Osborne, presented his economic restructuring plan on Monday, which would not only insist on tougher regulation on the City, but also strict controls on state borrowing.
A new "responsibility mechanism" would require banks to put funds away during boom years to ensure they are not left vulnerable during weaker times.
Surely, given the level of national debt Gordon Brown's "prudence" has left us with, future Governments should be required to adopt a similar policy of responsibility.
Posted September 30, 2008
