According to pre-speech notes, a Labour Government’s first act would be to reverse the raising of rates for small business, due in the April of election year, and to freeze the levy until 2016. However, the move would apply automatically only to businesses in England.
Mr Miliband calculates that the break, which would be worth an average £450 over two years to 1.5 million businesses, including shops, pubs and hi-tech start-ups, and up to £2,000 for some firms. According to the pre-speech notes, the revising of the business rates could be paid for by scrapping the current Government’s planned 2015 cut in corporation tax from 21 per cent to 20 per cent.
The Labour leader claims that this move would save the Treasury £340m in 2015/16 and £785m in 2016/17 and will say that this "effective tax rise" would also affect 80,000 large firms.
Mr Miliband will push the case for an economy based on higher skills and wages and the "dynamism" of small business. He will say that he wants growth in the UK to benefit “hard working families” and small business owners, not just the “privileged few”.
Meanwhile, Shadow Chancellor Ed Balls signalled yesterday (September 23rd) that he will reintroduce a 10p tax rate for low-earners, which will be paid for by a so-called "mansion tax" on properties worth more than £2m. According to Mr Balls, the move would provide a tax cut for 25 million people on low and middle incomes.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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