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

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.

Delivering the annual Mais lecture, Shadow Chancellor George Osborne set out the Conservative vision for a new economic model.

He argued that the debt-fuelled model of growth that the Government pursued over the last decade was fundamentally unsustainable, and that we need to move from an economy built on debt to an economy where we save and invest for the future. We have to deal with our debts to get the economy back on its feet.

He pointed to research which shows that the root cause of the economic crisis was an explosion of private sector debt, and that the biggest risk to the recovery is an explosion of public sector debt. High levels of public sector debt risk undermining growth.

He argued that the existing policy framework failed to prevent the crisis, is unable to deal with the current weakness of the economy, and won’t be able to stop it happening again. He set out a new economic model for growth based on saving and investment, and a new policy framework that can ensure that private and public debt are sustainable in the future, including:

· A new system of financial regulation, with the Bank of England back in charge of controlling the overall level of debt in the economy.

· A new fiscal policy framework, with an independent Office for Budget Responsibility to ensure that public debt is sustainable.

· A supply side revolution that releases the pent up enterprise and wealth creation of our country, encourages a nation of savers, and addresses long term structural weaknesses like poor education and a welfare system that traps people in workless poverty.

He also explained why the Government’s argument that we can afford to wait until 2011 before dealing with the deficit is complacent and puts the recovery at risk, and explained why we need to start dealing with the deficit in 2010:

· Confidence: a lack of confidence in the sustainability of the public finances is already undermining the recovery.

· The realities of markets: those who argue we should ignore financial markets are siren voices. If Britain loses the confidence of international markets the result would be emergency cuts that would indeed be swingeing and savage.

· The realities of Government: real public sector reform takes time so starting early on the deficit creates space for more targeted cuts that protect the poorest and front line services.

For the first time he also set out in detail how the budget process would work following the election in the event of a Conservative victory:

· Phase One: the independent Office for Budget Responsibility will set out an independent audit of the nation’s finances, based on independent growth forecasts. Only then will anyone know the true scale of the fiscal challenge that faces whoever forms the next government.

· Phase Two: an emergency budget within 50 days will set out the overall fiscal path and spending totals that we will stick to over the years ahead, as well as some of the cross-cutting measures on pay, the cost of Whitehall, the review of the pension age, and the largest public sector pensions, that will help to put our public finances on a sustainable footing. It will take targeted steps to reduce some budgets in-year in order to build credibility and make a start on reducing the deficit. Crucially, the first Budget will also contain measures to boost enterprise, encourage new jobs and show that Britain is open for business.

· Phase Three: over the Summer we will work flat out to conduct the detailed departmental Spending Review for the years after 2011 that the current government has simply refused to carry out, and publish that results of that review in the Autumn.

Read George’s Mais lecture in full