November 17, 2019

Boris Johnson: End the Brexit uncertainty so we can get on with business

Ahead of the CBI Conference in London on Monday the Prime Minister has unveiled a package of measures designed to help business make the most of Brexit, including:

  • A business rates cut. The burden of business rates will be reduced as part of a fundamental review.
  • A jobs tax cut. National insurance contributions will be cut by £1,000 for over half a million employers.
  • A construction tax cut. Tax relief on the purchase, building or leasing of a structure will be increased by 1%.
  • A research tax cut. We will review the scope of R&D tax credits and increase the rate by 1%.

Addressing the Conference later today the Prime Minister is expected to say:

Let’s not beat around the bush, big business didn’t want Brexit. You made that clear in 2016 and this body said it louder than any other.
But what is also clear is that what you want now - and have wanted for some time - is certainty.
So that you can plan and invest, so you can grow and expand, so that you can create jobs and drive prosperity.
Whilst you didn’t want it, the people did vote for it. And so it was for politicians to deliver it.
It has been politicians in a broken parliament - not you - that have failed in this and in some cases actively tried to sabotage the democratic will of the people.
This is why we had to have this election. Our hung and broken parliament was set on prolonging this delay.
Britain stuck in gridlock and our economy stuck in first gear. Extension to extension.
Marching business up to the top of the hill, only to march them down again.
And this is Corbyn’s plan at this election – the chaos and division of two more referendums, continued paralysis continued uncertainty.
With a Conservative majority Government you can be sure we will Get Brexit Done and leave with the New Deal that is already agreed – ending the uncertainty and confusion that has paralysed our economy.
We can then focus on the people’s priorities – investing in the NHS, cutting crime and making sure our children get a world class education…
And you can focus on what you do best – spurring innovation, creating jobs, stimulating growth.

What you need to know:

A Conservative majority Government will take action to support business by:

Reducing the burden of business rates.

Business rates are one of the top concerns of British businesses so a Conservative majority Government will launch a fundamental review at our first budget, consulting widely. We will reduce the overall burden of business rates as part of this review.

Raising the Employment Allowance from £3,000 to £4,000.

Employers pay Class 1 National Insurance Contributions on their employees’ earnings. The Employment Allowance is currently claimed by over 1 million employers to reduce their employer NICs bills by up to £3,000. The next Conservative Government will increase the Employment Allowance to £4,000, which will provide a tax cut of up to £1,000 for more than half a million businesses. This will amount to almost a half a billion-pound tax cut for small businesses.

Increasing the Structures and Buildings Allowance from 2 per cent to 3 per cent.

We will increase the SBA to 3 per cent to increase on the tax relief on the purchase, building or leasing of a structure, providing a significant boost to business investment. This is a permanent increase in the relief and firms of all sizes will benefit. Industries with a faster turnover of buildings such as in agriculture will benefit in particular.

Increasing the R&D tax credit rate from 12 per cent to 13 per cent.

It is essential that we boost private sector research and development investment in order to raise productivity over the medium and long term. Around 7,000 claims for R&D credits were made under the Research and Development Expenditure Credit scheme in 2016/17. Raising the relief rate from 12 per cent to 13 per cent will boost manufacturing and professional, scientific and technical services sectors in particular. We will also review the scope of R&D tax credits to ensure they are fit for the future, including whether areas of investment such as cloud computing and data should be within scope.

A billion pound boost to business.

The cumulative benefit to businesses of the changes to the Employment Allowance, SBA and R&D tax credits will be approximately £1 billion in 2022/23.

Region Labour's Pension Tax (£) Extra Months to Work
England 11,167 44
East Midlands 6,150 50
Greater London 12,871 45
North East 9,758 38
North West 6,835 47
South East 14,270 40
South West 7,407 45
West Midlands 10,729 41
Northern Ireland 13,718 35
Scotland 10,653 41
Wales 11,691 36
United Kingdom 11,253 43

Commenting, Therese Coffey, Secretary of State for the Department of Work and Pensions, said:

“Corbyn’s Pension Tax will see ten million savers facing a huge bill forcing them to delay their retirement for almost three and a half years.
“This is just one of the ways a Corbyn government would hammer hardworking people on top of his plans to hike up taxes by £2,400 a year, as well as the cost of his plan for unlimited immigration and the chaos of 2020 being dominated by two more referendums – one on Brexit and another on Scottish independence.
“Only Boris Johnson and the Conservative Party can get Brexit done with a deal, get parliament working again and turbocharge our economy to unleash Britain’s potential.”

Read more about how this Pension Tax will impact millions of savers (PDF)