Small business tax cut to benefit 1.5 million – Miliband
Miliband is to announce business rate cuts for small firms and set out a new housing strategy in his keynote speech to Labour’s annual party conference today.
If Labour wins the next election, around 1.5 million small businesses could save an average of £450 over two years. Business rates are set to rise in 2015, but Miliband would reverse this increase for companies with an annual rental value or £50,000 or less.
The rates would return to 2014 levels, and be frozen for 2016. The plan would be funded by reversing a planned UK-wide cut in corporation tax, Miliband will say.
He will also announce plans to build 200,000 new homes a year by 2020 and introduce a review to draw up faster housing reform legislation. The review will consider how compulsory purchase orders could be strengthened, and councils will be given powers to charge developers for sitting on land that is not developed with planning permission, as well as a ‘right-to-grow’ where they can demand neighbouring authorities’ cooperation for housing development.
Miliband will say: “David Cameron talks about Britain being in a global race. But what he doesn't tell you is that he thinks the only way Britain can win is for you to lose. "The only way we can win is in a race to the top.
“Too many of the jobs we're creating in this country are just too low paid, too many of the gains in our economy are just scooped up by the privileged few, including those big bonuses, and too often you are left being charged over the odds.
“They used to say 'a rising tide lifts all boats'. Now the rising tide just seems to lift yachts.”
But business minister Matthew Hancock said: “Ed Miliband is calling for a tax rise on business that would cost jobs. Tax rises on businesses and the same old Labour policy of more borrowing and more debt would undermine the recovery. And it's hardworking people who would pay the price with their jobs, higher taxes and higher mortgage rates.”
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