Tory MPs want to exempt new firms from tax

START-UP companies should enjoy a three-year amnesty from business taxes, according to a report released today by backbench Tory MPs that calls for radical reforms to encourage entrepreneurialism.

Other measures proposed by the Free Enterprise Group include obliging all Whitehall departments to pursue policies that boost the economy, regionalising the minimum wage, and allowing companies to buy visas for overseas workers.

It also wants public sector agencies to make money for the Treasury by taking on private sector work and bidding for contracts from around the world.

“We need to stop talking as if only the private sector is subject to efficiency and competition,” said George Freeman MP, who co-authored the report with fellow Tory Kwasi Kwarteng. “Every part of government should be having to justify its spending by showing it is delivering more for less. Treasury spending should reward those who deliver and penalise those who don’t.”

The report also backs the controversial plans to pay public sector workers less outside the south east.

The Free Enterprise Group includes a large proportion of the Conservative MPs who were first elected in 2010 and its reports are seen as indicative of the party’s future direction of travel.