Tories pledge to help small firms

By John Harrington

- Last updated on GMT

Related tags Small businesses Small business Business

David Cameron
David Cameron
The Conservatives have called for action to help struggling small businesses through difficult times. Deferring VAT bills for up to six months, and...

The Conservatives have called for action to help struggling small businesses through difficult times.

Deferring VAT bills for up to six months, and cutting the rate of employers National Insurance contributions by 1p for at least half a year, have been urged.

The Tories called for the Government to scrap the planned 2p rise in corporation tax and reduce the level to 20p for small companies.

Writing in the Observer, Tory leader David Cameron also said councils must speed up the time it takes to process payments to small businesses that provide them with goods and services.

In addition, banks must "behave responsibly" and "stop the march to mass insolvencies", Cameron said.

"Britain¹s small businesses need our help," he wrote. "We intervened to prevent the beating heart of our economy - the financial system - from collapsing. We¹ve got to do the same for its lifeblood. Small and medium-sized businesses employ over 13 million people and turn over £1.440bn a year."

Shadow Secretary for Business Alan Duncan said: "Under our proposal, businesses with fewer than five employees would have the rate of employers' National Insurance that they pay cut by 1p for at least six months.

"A small business with four employees and an annual wage bill of £150,000 would save more than £100 a month.

"The cut would be paid for through our existing plan to abolish complex reliefs and allowances introduced by Gordon Brown, and use the money to cut the small companies rate of corporation tax to 20p."

Related topics Legislation

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