In an attempt to win over Britain’s SME owners and make Labour “the party of small business”, Ed Miliband, the leader of the Labour party, has pledged to reverse the planned business rates rise if his party wins the next election.
Business rates are currently due to rise in April 2015, but if it came to power in May 2015, Labour are pledging that they would immediately reverse the rise back to 2014 levels and keep them frozen for 2016. In total, the reduction in business rates for smaller firms would cost the Treasury around £800m. To pay for the cut, Miliband plans to reverse the coalition’s planned cut in corporation tax, from 21 per cent to 20 per cent, for “big business” in 2015. Giving his keynote speech at Labour’s annual conference in Brighton today, Miliband will say that 80,000 large firms have already benefited from £6bn worth of reductions in corporation tax under the coalition, while 1.5 million small firms have seen their business rates rise by an average of almost £2,000. The move would be worth an average of £450 over two years to 1.5 million small firms – and as much as £2,000 to some firms. Up to 1.5 million businesses with properties worth an annual rent of £50,000 or less would benefit, Labour estimates. Business groups, including the CBI, have criticised the plans, which rely on reversing the corporation tax cuts. John Cridland, director general of the CBI, said cutting corporation tax was “one of the coalition’s greatest achievements, sending a clear signal internationally that the UK is open for business”. Photo source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.