THE dividing lines between the opposition and the Conservative Party were brought into sharp focus over the weekend, when Ed Balls confirmed his intention to raise taxes if Labour wins the next election.
It may be helpful to remember that the richest already and rightly make a substantial contribution to our public finances, with the top one per cent contributing 30 per cent of our income tax revenues and the top earner in every 1,000 paying one seventh of all income tax revenues.
Last time the top rate was set at the level Mr Balls proposes it actually caused income tax revenues from the highest earners to fall, not rise.
So while the richest must pay their fair share, this Government is clamping down hard on corporate tax evasion. But to deliberately cause the largest contributors to the public purse to move their assets and businesses out of this|country is surely the policy equivalent of cutting off your nose to spite your face.
It was particularly concerning to see many captains of industry express strong reservations about the detrimental effect such a move would have on the economy.
This week I will meet with a representative group of local business leaders to gauge their experience of the recovery.
I am always inclined to treat with scepticism claims about the reduction of red tape faced by businesses, as I know many of my constituents feel that many unnecessary burdens remain. However, it is a fact that the Government has already exceeded its target of indentifying 3,000 pieces of frivolous regulation to be cut or simplified, with an estimated saving to business of £850m.
Meanwhile, even the smallest businesses in Salisbury will be able to benefit from the chancellor’s decision to cut £1,000 off every retailer’s rates with a rateable value up to £50,000 and scrap employers’ national insurance contributions for under 21s to bring down the cost of giving someone their first job.
There are times when the most useful thing government can do to promote small business success is to get out of their way, so I am somewhat doubtful about Labour’s other proposal to set up another quango for small businesses.
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