David Cameron has welcomed the official announcement of the General Election date.

The election is a choice between five more years of Gordon Brown’s tired government making things worse - or change with the Conservatives, who have the energy, leadership and values to get Britain moving again.

Speaking to supporters this morning, David Cameron will say that the Consevatives are “fighting this election for the great ignored”.

“Young, old, rich, poor, black, white, gay, straight. They start our businesses, operate our factories, teach our children, clean our streets, grow our food, keep us safe. They work hard, pay their taxes, obey the law”, he will say.

“They’re good, decent people – they’re the people of Britain and they just want a reason to believe that anything is still possible in Britain.”

“This election is about giving them that reason, giving them that hope”.

The Conservatives have launched a poster as part of a wider campaign highlighting how Labour’s job tax will kill the recovery.

“Labour have confirmed today that they are going ahead with a national insurance tax rise on jobs that Britain’s business leaders say will endanger jobs”, said George Osborne, the Shadow Chancellor.

The Conservatives have also unveiled new research showing how National Insurance has become Labour’s favourite stealth tax:

• Total receipts from National Insurance have risen over five times faster than income tax receipts over the last decade.
• Average National Insurance Contributions (NICs) per family have risen over twelve times as much as average income tax receipts per family over the same period.
• In that time Gordon Brown cut the basic rate of income tax once (as part of the 10p tax con) but he increased National Insurance rates in three different ways – and that’s even before Labour’s new tax on jobs planned for 2011

“With Gordon Brown now finally forced to call the election, the choice is clear”, Osborne added.

“Labour’s jobs tax and debt will stamp out the green shoots and kill the recovery. Conservative plans to cut wasteful government spending and stop the jobs tax will get Britain working.”

Philip Hammond has criticised Labour’s announcement that Lord Alan Sugar will lead a new government task force designed to fight the corner of small businesses against the banks.

“Only Labour could announce on April Fool’s day that it had appointed the man who called credit-starved small businesses ‘moaners’ who lived in ‘Disney World’ to be the adjudicator on their applications for bank loans”, he said.

Lord Mandelson has selected Lord Sugar to sit on the task force which will set up the Small Business Credit Adjudicator. Lord Mandelson believes the people he has chosen “… understand the critical importance of new finance and credit flow to the growth of small, innovative companies”.

But Lord Sugar said last year: “The moaners are bust… they don’t need the bank, they need an insolvency practitioner”.

This comes on the same day that the Federation of Small Businesses, the British Retail Consortium and 23 business leaders attacked Labour’s planned tax on jobs.

“No wonder no-one believes Lord Mandelson’s claims to be the champion of small business when Labour would rather tax jobs and the recovery than cut government waste”, Hammond added.

Well this is news that small business can do without. Clearly Lord Alan Sugar has nothing in common with small business and is merely another puppet of Labour.

Jim Ferguson

Mark Prisk, the Shadow Business Minister, has announced that a Conservative Government would undertake a full and fundamental review of small business taxation, including IR35.

The aim will be to provide a simpler, clearer and lasting tax regime, so businesses can plan with confidence.

“For the last 13 years, Labour have constantly meddled with the tax rules for freelancers and self-employed, Prisk said. “IR35 has especially proved to over-complex, uncertain and often unfair”.

IR35 has cost business £73 million over 10 years but it has barely raised revenue for the Treasury. Prisk criticised Gordon Brown for making it harder to be self-employed at a time when Britain should be open for business.

“This is why a Conservative Government would mandate the independent Office of Tax Simplification to undertake a fundamental review of current arrangements with the aim of providing a clearer, lasting and fairer tax regime”.

This announcement is in addition to previous plesges to simplify the tax system, cut Corporation Tax for small firms, and make small business rate relief automatic.

“Small businesses cannot afford 5 more years of Gordon Brown”, Prisk added. “Only the Conservatives have the energy and the ideas to get Britain working by boosting enterprise”.

Previously unpublished papers reveal the true scope of Labour’s dependency on union cash.

Following Conservative pressure, the Government will publish the previously confidential minutes and papers of the Inter-Party Talks on the Funding of Political Parties.

Francis Maude, Shadow Minister for the Cabinet Office, led the Conservative delegation in the Talks. “Gordon Brown wrecked the opportunity to clean up politics because he wanted the unions’ votes to become Labour Party leader”, he said. “These documents expose the Labour Party’s addiction to union cash”.

The Talks were chaired by Sir Hayden Phillips and were suspended without substantive agreement in October 2007.

Peter Watt, then Labour General Secretary and a delegate on the Talks, has subsequently written how the Talks failed since “the Labour Party could not resolve its internal issues”, “my own party was the biggest block to reform” and Gordon Brown “repeatedly warned the Prime Minister [Tony Blair] that he would block any attempt to reduce the unions’ power.”

Peter Watt also notes how the Liberal Democrats were bought off by Labour:  “[Labour] managed to clinch a deal with the LibDems by promising that Menzies (Ming) Campbell would get a taxpayer-funded car and driver if the reforms went through.”

The newly published papers today reveal the true extent of the union funding of the Labour Party:

• Many union members would not pay a political levy to the Labour Party if given a choice.
• Some trade unions affiliate more individuals to the Labour Party than they have union members paying a political levy (only money from the political levy can be used for political purposes).
• From 2001 to 2006, the unions gave the Labour Party £45 million in cash.
• Trade unions pay £1 million a year to the Labour Party at a local and regional level, tying in local Labour Party branches through binding “Constituency Development Plans”.

Sir Hayden Phillips drew up detailed option papers on how the political levy could be reformed to give union members genuine choice. The Labour Party objected to these proposals. This was the key stumbling block that led to the Talks failing.

It’s wrong that union barons, not rank-and-file union members, decide how much to give to Labour”, Maude added.

“A Conservative Government will seek an agreed long-term settlement that would introduce an across-the-board cap on donations to end the big donor culture. As part of that reform, union members must have real choice on whether they want to pay a political levy and where it goes.”

Interesting to see how easy it was to buy off the Libdems.  I suppose some things never change.

Jim Ferguson

The Conservatives have announced that a Conservative Government will stop Labour’s tax rise on jobs by cutting waste.

Stopping the planned increases in National Insurance Contributions will result in 7 out of 10 working people being better off.

A Conservative Government will take immediate action to start cutting Government waste, in order to spend £6 billion less in 2010-11 than Labour’s plans.

“The re-election of a Labour Government under Gordon Brown – with more debt, waste and taxes – will bring us a new recession”, George Osborne said, speaking alongside Ken Clarke and Phillip Hammond.

“Labour will kill the recovery with their tax on jobs. We will cut Labour waste to stop it.”

Former Government advisers Sir Peter Gershon and Dr Martin Read, now members of the Conservatives’ Public Sector Productivity Advisory Board, advise that savings of £12 billion across all departmental spending are possible in-year without affecting the quality of front line services.

Having identified these savings the Conservatives can now commit to stop Labour’s tax rise on working people and jobs at the same time as reducing the deficit faster:

Labour are planning to raise Employees National Insurance Contributions (NICs) for everyone earning over £20,000. We will stop this increase altogether for everyone earning under £35,000 by raising the primary threshold at which people start paying NICs by £24 a week, and raising the Upper Earnings Limit by £29 a week.

Relative to Labour’s plans everyone liable for Employees NICs earning between £7,100 and £45,400 – which is 7 out of 10 working people – will be up to £150 better off a year under the Conservatives. Lower earners will get the greatest benefit as a percentage of their earnings. Nobody will be worse off.

Labour are also planning to raise Employers NICs for everyone earning over £5,700. This is a tax on jobs that will undermine the recovery. We will raise the secondary threshold at which employers start paying NICs by £21 a week, saving employers up to £150 for every person they employ relative to Labour’s plans. This will reduce the cost of Labour’s tax rise on employers by more than half.

Read George Osborne’s speech in full

David Cameron has responded in the House of Commons to the Chancellor’s presentation of the last Budget before the general election.

He said Labour “have made a complete mess of the British economy and they are totally failing to clean it up”.

Cameron set out the big argument in British politics: Labour say “don’t do anything before the election, let’s just sit tight and keep our fingers crossed”, and the Conservatives say “we need real action to get our economy moving – and urgently”.

Highlighting new policies that copied existing Conservative proposals, such as the stamp duty cut and new university places, he said the “only new ideas in British politics are coming from this side of the House” and that “the only thing Labour bring are debt, waste and taxes”.

The figures that stands out above any other, he said, was that Labour have “doubled the national debt, and they’re going to double it again”.

Outlining the Government’s failure Cameron criticised “all those schemes that they launched with great fanfare” for failing to help enough people. He also drew comparisons on the state of the economy when Labour came to power to the present – including the huge increase in the debt and deficit, and a falling down the global league tables in terms of competitiveness, tax and regulation.

We need a credible plan to deal with Britain’s record debts”, he said, criticising the Chancellor’s repeated hope to halve the deficit by 2014 as giving us a deficit “almost as big as when Denis Healey went to the IMF in the 1970s”.

Moving on to the delay in dealing with the deficit, he said “the risk to recovery is not in dealing with the deficit now, it’s in not dealing with the deficit now”. Cameron said that “every family knows that when your debts mount up, you need to start paying them off or things will only get worse”, and that it is time for the Government to learn the same lessons”.

“The Prime Minister and Chancellor faced a choice – between bold action in an election year or playing politics. Once again, they chose politics.”

Cameron also emphasised the need “to show the world that we are back open for business”, saying that because Labour “flunked the difficult decisions on spending, they are raising tax after tax after tax – all after the election”. “These are the ticking tax bombshells timed to go off the day after the election and that will destroy our recovery.”

He said that the greatest risk to Britain’s economic recovery was another Labour government. “No one has yet thought of a question to which the answer is five more years of this Prime Minister”, he said.

“We need a credible plan to cut the deficit. We need an unleashing of enterprise across the nation. We need a plan to boost employment through radical welfare and school reform. If ever there was a time when this country needed a radical change of direction it is now.”

He concluded that Britain needs a Conservative government “to clean up the mess made by this Labour Government”.

“Britain needs new energy, leadership and values to get this country moving again. That’s the argument we’ll take to the country the moment the Prime Minister has been forced by the law of the land to call the election he has avoided for so long.”

Read David’s speech in full.