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

There is no special relationship between the United States and Britain, a House of Commons select committee said March 28. The Commons Foreign Affairs Committee concluded that the term is “potentially misleading, and we recommend that its use should be avoided.”

“The UK must continue to position itself closely alongside the U.S. but there is a need to be less deferential and more willing to say no where our interests diverge,” said the committee’s chairman, Mike Gapes.

The committee said it was simply mirroring the attitude U.S. President Barack Obama had taken since coming into power.

“The UK’s relationship should be principally driven by the UK’s national interests within individual policy areas,” it said. “It needs to be characterized by a hard-headed political approach to the relationship and a realistic sense of the UK’s limits. The foreign-policy approach we are advocating is in many ways similar to the more pragmatic tone President Obama has adopted towards the UK.”

In the future the UK needs to be “more willing to say no,” it concluded.

Britain has been a staunch ally of the U.S. for decades. However, repeated snubs from the new administration led the committee to conclude that Britain is considered just one of many U.S. allies—with nothing special in the relationship at all.

Right at the start of his presidency, Obama insulted Britain by sending back a bust of Winston Churchill, and giving Prime Minister Gordon Brown a gift of 100 dvds that don’t even play on British dvd players.

The latest snub is America’s refusal to back Britain’s right to the Falkland Islands, instead backing Argentina’s calls for negotiation at the United Nations. This is despite the fact that Argentina’s claim on the Falklands is about as strong as Russia’s claim to Alaska. The Falkland Islands never had an indigenous population. Its currant inhabitants came from Britain. The last thing they want is to be ruled by Argentina. Argentina’s only claim is that it had a colony on the island a few hundred years ago.

No wonder Britain has concluded that there is no special relationship. This is a trend the Trumpet has been predicting for years. For more information on the future of this relationship, see our article “The Tie That Binds America, Britain and Israel.” •

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