BORIS TO TRIGGER A BREXIT BOOM
£1billion of tax cuts will turbocharge the economy
BUSINESS tax cuts worth more than £1billion a year will spur a surge in economic growth if the Tories win the election.
In a speech later today, Boris Johnson will promise to slash a series of levies on firms.
The Prime Minister is also pledging to reduce business rates and National Insurance
contributions as well as cut the cost of employing staff to encourage a jobs boom.
Mr Johnson will tell the Confederation of British Industry’s annual conference that he also plans to increase tax relief on investments in new premises and research and development.
The PM’s promises come after a CBI chief warned that Labour’s hard-Left plan for the country could “crack the foundations of our economy”.
But Mr Johnson’s speech will seek to assure his audience the Tories remain firmly on the side of business, despite some company bosses’ misgivings about Brexit.
Acknowledging their concerns as well as the CBI’s opposition to the Leave campaign during the 2016 EU Referendum, the Tory leader is expected to say: “Let’s not beat around the bush – big business didn’t want Brexit. You made that clear in 2016 and this body said it louder than any other.
“But what is also clear is that what you want – and have wanted for some time – is certainty so that you can plan and invest, so you can grow and expand, so that you can create jobs and drive prosperity.
Stimulating
“Whilst you didn’t want it, the people did vote for it and so it was for politicians to deliver it.
“It has been politicians in a broken parliament – not you – that have failed in this and in some cases, actively tried to sabotage the democratic will of the people.
“This is why we had to have this election; our broken Parliament was set on prolonging this delay.”
Mr Johnson will say the Brexit crisis has left the country’s economy “stuck in first gear”.
Repeated delays have been “marching business up to the top of the hill, only to march them down again”, he is expected to add.
Setting his sights on Labour leader Jeremy Corbyn, the Prime Minister will tell the CBI: “This is Corbyn’s plan at this election – the chaos and division of two more referendums, continued paralysis, continued uncertainty.
“With a Conservative majority government, you can be sure we will get Brexit done and leave with the new deal that is already agreed, ending the uncertainty that has paralysed our economy.
“We can then focus on the people’s priorities – investing in the NHS, cutting crime and making sure our children get a world-class education. And you can focus on what you do best – spurring innovation, creating jobs, stimulating growth.”
The package of tax-cut election pledges for businesses will include:
● A wide-ranging review of business rates to be announced in the first Budget of a Tory majority government, overhauling the system and reducing the levy on firms.
● Raising the annual Employment Allowance threshold at which employers begin paying Class 1
National Insurance contributions on their employees earnings from £3,000 to £4,000.
● Increasing the Structures and Buildings Allowance – a tax relief on buying, purchasing or leasing buildings – from two per cent to three per cent.
● Raising the Research and Development Tax credit rate from 12 per cent to 13 per cent.
Tory officials claim that reducing the National Insurance contributions paid by more than 500,000 businesses a year will equate to a £500million tax cut for small businesses.
They also say increasing the Structures and Buildings Allowance will help all firms, particularly in the agricultural sector.
Officials believe raising the Research and Development Tax credit rate will boost industries too. Currently around 7,000 claims for the relief are made every year.
In total, the Conservatives estimate the proposed tax cuts will save businesses more than £1billion a year by 2022/23.
Mr Johnson’s proposals are expected to be welcomed by many at the CBI conference in London.
Mike Cherry, chairman of the Federation of Small Businesses, last night said the Prime Minister’s promises would “lay down a gauntlet to other parties”. And Labour
leader Jeremy Corbyn could face some difficult questions about his hard-Left proposals.
CBI director-general Carolyn Fairbairn yesterday warned the party’s election plans could ruin the British economy.
Speaking on the Sophy Ridge On Sunday show on Sky News, Ms Fairbairn said: “We understand the questions that Labour are asking, but we look at the policies on the table and have real concerns that they are going to crack the foundations of our economy.”
Ms Fairbairn urged Mr Corbyn to “work out different answers to these problems” because otherwise, he will “simply shut investment out of our country”. The Tories last night seized on Ms Fairbairn’s warning about Labour’s threat to the economy.
As Mr Johnson got back on the campaign trail to meet Londoners in Uxbridge and at the Gurdwara Sri Guru Singh Sabha Sikh Temple in Southall, Chancellor Sajid Javid urged people to vote Tory.
He said: “Jeremy Corbyn’s Labour would spend recklessly, damage our economy and hit people in the pocket.
“A vote for the Conservatives is a vote to get Brexit done and to keep our economy strong.”