Love the City? Maybe.
The Tories are clearly trying to reconnect with the City.
This morning’s Financial Times sees party treasurer Michael Spencer, also CEO of interdealer broker Icap declare that the Tories “charish the City.”
Some observers of comments from George Osborne, shadow chancellor, over the past year might have doubted that. Far from seeming to hold dead his friends in the City, Osborne appeared to turn on them as the crisis deepened.
Spencer though is pushing the Tory policy to cut corporation tax and the abolish the 50% band for the wealthy.
He even says his personal hope is that over the next parliament corporation tax could be pushed down to 20%.
But there is a payoff for this. Allowances and reliefs will go in order to pay for it. But which ones, and will they make the the tax cut neutral and therefore useful? No point in cutting the headline rate if the loss of allowances and reliefs means there’s no real gain. No sure whether that lack of certainty displays much love for the City or not.