PG38-39 Footwear Main:Footwear_Jan10_p30 02/02/2010 12:54 Page 38
Talking Shop
Election Fever
What The Parties Are Promising by Adam Bernstein
A
ccording the Benjamin Franklin, one of the Founding Fathers
of the United States, ‘in this world nothing can be said to be
certain, except death and taxes’. However, there is another
certainty – that by 3 June 2010 we will have had a General
Election, and quite possibly, a change of Government.
Each of the main parties has much to say in terms of their policies,
but specifically, what are they each offering business?
Conservative
The Conservatives plan to reform the tax system they claim is
uncompetitive which would reduce the tax burdens on families and
businesses. However, they would increase the number of green
taxes, and encourage low carbon energy use. ‘Stealth’ taxes such as
Air Passenger Duty and the Vehicle Excise Duty rises on older cars
would be removed.
Other tax proposals include a simpler tax code; a reduction in the Liberal Democrats
headline rate of Corporation Tax to 25 per cent and the small The LibDems programme begins by reducing the regulatory and
companies rate of Corporation Tax would drop from 22 to 20 per administrative burdens on businesses. To do this, they plan to consult
cent - both funded by a reduction in allowances; struggling firms on regulations and legislation that needs to be either simplified or
would be able to defer VAT for six months; the inheritance tax repealed and by automatically abolishing regulations after a period
threshold would be raised to £1 million; and stamp duty on homes of time. Also, European directives will only be enacted ‘as is’ rather
under £250000 would be abolished. The Conservatives would keep then embellished.
Labour's 50p tax rate and would work with councils to freeze
Council Tax rates. The country would become greener; carbon reducing industries and
businesses who want become more energy efficient would receive
As for Europe, the Conservatives would amend the law so that tax incentives. Also, a National Infrastructure Bank would be set up to
further transfers of power to the EU couldn’t happen without a coordinate investment. Air Passenger Duty will be scrapped and
referendum. They also want a restoration of national control over instead, each plane will be taxed on its emissions.
social and employment law.
In terms of employment law, the Conservatives would take the UK Each of the parties is spewing out reams of policy documents:
out of the Social Chapter whilst extending the right to request "The Conservatives plan to reform the tax system they claim is
flexible working to all with children under 18. Employment law
uncompetitive which would reduce the tax burdens on families and
would be simplified to make hiring easier and they would offer
Businesses....."
businesses £2500 tax breaks for creating new jobs. There would
"The LibDem's plan to cut business rates for small businesses by
also be state provided skills training to provide ‘useful skills and
reforming the valuation system to base rates on site values rather
apprenticeships with actual employers’. At the same time, the newly
than rental values...."
"Labour, via HM Revenue & Customs, created the Business
unemployed would be allowed to re-skill whilst claiming Jobseekers
Payment Support Service, a service for those that owe taxes to
Allowance and there would be £100 million to help those not in
HMRC to spread payments over a given period of time with
employment, education or training into work. Any new business
minimal cost...."
started in the first two years of a Conservative Government would
not pay any National Insurance on the first ten employees it hires in
the first year. The minimum wage would be maintained and the
benefits system would be reformed so that people are better off The LibDem’s plan to cut business rates for small businesses by
working rather than claiming. reforming the valuation system to base rates on site values rather
than rental values. Firms with a rateable value under £25000 could
Under another plan, the Conservatives offer businesses help via a claim an allowance. Corporation Tax would be simplified by removing
£50 billion National Loans Guarantee Scheme open to businesses a number of reliefs which would be funded by a lowering of the tax
of all types and sizes. rate by 1 per cent. In another move, small businesses could choose to
pay Corporation Tax based on their net operating cashflow rather
Conservative transport policy mentions that they would build their accounting profits. And individuals would get a £10000 nil rate
several cross country high speed rail links and to tackle congestion, tax. On Council Tax, the Lib Dems would replace it with a new local
would either build new roads or make better use of present tax based on income.
capacity. Councils would also be allowed to apply for funding to
create green travel initiatives. Lastly, the Conservatives would A General Anti Avoidance Rule would be introduced to replace the
tackle 'rogue clampers', shorten the time to reopen roads after maze of other rules aimed at stopping tax avoidance schemes. The
incidents and slow down the rate of speed camera installations. balance to this would that businesses would get a quick response to a
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FOOTWEAR TODAY
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FEBRUARY 2010
www.footweartoday.co.uk
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