Conservatives propose 1p cut to national insurance
SME sector should be thrown a lifeline, Tory leader David Cameron says
National Insurance should be cut by 1p, the Tories have said, to give small
businesses a shot in the arm.
The move is designed to stymie the impacts of the credit crisis on small
business.
According to
bbc.com, the
reduction should last six months and the scheme would apply to businesses with
four or less staff.
Cameron said SMEs would be ‘going to the wall unless they get help’, and the
1p cut could save an estimated £600 per business – costing the Treasury £225m.
He also said in preventing the economic downturn from spiraling into a
recession, the plight of small businesses needs to be considered very carefully.
‘We would like it if there was a magic wand. If we were like Sweden and had a
budget surplus we could do much more,’ he said.
Cameron is also calling for a six month VAT holiday for medium-sized
businesses.