Tories unveil 250m tax cut for new firms

THE Tories yesterday announced a surprise tax cut for new businesses in a bid to create 60,000 new jobs.<br /><br />Speaking at the party&rsquo;s conference in Manchester, shadow chancellor George Osborne unveiled plans to exempt new firms from some National Insurance contributions.<br /><br />Osborne said that any business that launches in the first two years of a Tory government will not have to pay employers&rsquo; national insurance on the first 10 employees it hires during its first year of trading.<br /><br />The scheme &ndash; which is capped at &pound;25,000 per firm &ndash; will cost around &pound;250m a year, Osborne said, although he did not reveal how he would fund the plans.<br /><br />He added: &ldquo;We have to end Labour&rsquo;s jobs crisis, which has left one in five young people unable to find work.&rdquo;<br /><br />And Osborne said the policy would send a different, more pro-business message to employers.<br /><br />&ldquo;Invest here, set up your business here, come and make your enterprise here and we will support you. We will send a message loud and clear that this country is open for business.&rdquo;<br /><br />Employers&rsquo; organisation the CBI said the Tories were right to abolish the &ldquo;tax on jobs&rdquo; created by new businesses.<br /><br />John Cridland, CBI deputy director-general, said: &ldquo;Many business people are put off hiring their first employee by the sheer level of taxes and red tape, particularly at this time.<br /><br />&ldquo;This proposal should help new firms take bolder steps in creating jobs, and would give a much-needed boost to UK entrepreneurs looking to grow a business.&rdquo;<br /><br />And Forum for Private Business chief executive Phil Orford said the plans were &ldquo;a genuine stimulus to employment&rdquo;.<br /><br />But Vince Cable, the Lib Dem Treasury spokesman, said: &ldquo;This tax break for new businesses would mean that new firms will be able to undercut existing small companies.&rdquo;