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| Tories propose business tax cuts | Tories propose business tax cuts |
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| David Cameron has unveiled plans to offer National Insurance breaks to firms which employ people who have been unemployed for more than three months. | David Cameron has unveiled plans to offer National Insurance breaks to firms which employ people who have been unemployed for more than three months. |
| The Tory leader said the incentive to take on workers would be funded from unemployment benefit savings. | The Tory leader said the incentive to take on workers would be funded from unemployment benefit savings. |
| Mr Cameron said his plan was "fiscally responsible" and questioned how the prime minister would fund tax cuts. | Mr Cameron said his plan was "fiscally responsible" and questioned how the prime minister would fund tax cuts. |
| But Gordon Brown said the figures "simply do not add up" and "serious policy" was needed for "serious times". | But Gordon Brown said the figures "simply do not add up" and "serious policy" was needed for "serious times". |
| Mr Brown has hinted at possible tax cuts in the pre-Budget report. The Lib Dems have already pledged tax cuts. | Mr Brown has hinted at possible tax cuts in the pre-Budget report. The Lib Dems have already pledged tax cuts. |
| 'Biggest worries' | 'Biggest worries' |
| Mr Cameron said it was "a mistake" to believe the government could "borrow without limit" and said he believed the government had rowed back on publicised plans for a "Keynesian spending splurge". | Mr Cameron said it was "a mistake" to believe the government could "borrow without limit" and said he believed the government had rowed back on publicised plans for a "Keynesian spending splurge". |
| The Conservatives say their plan would create 350,000 jobs and cut firms' tax burden by £2.6bn. | The Conservatives say their plan would create 350,000 jobs and cut firms' tax burden by £2.6bn. |
| Mr Cameron said that, in effect, companies would receive a proportion of the benefit payment in the form of a tax break. | Mr Cameron said that, in effect, companies would receive a proportion of the benefit payment in the form of a tax break. |
| No Tory promise can be taken seriously while their economic strategy remains incoherent Stephen Timms, Treasury minister Send us your comments class="" href="/1/hi/uk_politics/7719628.stm">At-a-glance: Party tax cut policy | |
| He said it costs the taxpayer £8,000 when someone goes on unemployment benefit and their scheme would see about £2,500 of that used to fund a cut in the amount of NI paid by firms. | He said it costs the taxpayer £8,000 when someone goes on unemployment benefit and their scheme would see about £2,500 of that used to fund a cut in the amount of NI paid by firms. |
| He told a press conference the plans were a "budget submission" - which he hoped the government would implement now, rather than a policy pledge for a future Conservative government, as it was best implemented "at the beginning of a recession". | He told a press conference the plans were a "budget submission" - which he hoped the government would implement now, rather than a policy pledge for a future Conservative government, as it was best implemented "at the beginning of a recession". |
| "One of the biggest worries for people right now is unemployment," he said. | "One of the biggest worries for people right now is unemployment," he said. |
| "Instead of the government paying for them to be unemployed it can be paying for them to be in work." | "Instead of the government paying for them to be unemployed it can be paying for them to be in work." |
| 'Fiscally responsible' | 'Fiscally responsible' |
| He said his pledged tax cuts were "fully funded" while the prime minister had "no idea" how his would be paid for. | He said his pledged tax cuts were "fully funded" while the prime minister had "no idea" how his would be paid for. |
| He said his plan was "fiscally responsible because the money is only spent if someone comes off the unemployment register ... The saving is made in the current year and the spending is in the current year." | He said his plan was "fiscally responsible because the money is only spent if someone comes off the unemployment register ... The saving is made in the current year and the spending is in the current year." |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| But in his monthly press conference, Gordon Brown dismissed the plan as a "one-off initiative" when what was needed was "a serious policy for serious times". | |
| And he added: "They can't show definitively how they can guarantee to pay for it." | And he added: "They can't show definitively how they can guarantee to pay for it." |
| "They change their policy every day, they have a new initiative to get in the news." | "They change their policy every day, they have a new initiative to get in the news." |
| Mr Brown has hinted that might be possible tax cuts in the pre-Budget report, expected to take place next week. | Mr Brown has hinted that might be possible tax cuts in the pre-Budget report, expected to take place next week. |
| In his annual Mansion House speech at the Lord Mayor's Banquet on Monday, he said it was necessary to maintain spending - and to increase borrowing to do so - to support the economy through its current troubles. | In his annual Mansion House speech at the Lord Mayor's Banquet on Monday, he said it was necessary to maintain spending - and to increase borrowing to do so - to support the economy through its current troubles. |
| On Tuesday he said: "A fiscal stimulus means you are prepared to add to borrowing in conditions where you have low national debt." | On Tuesday he said: "A fiscal stimulus means you are prepared to add to borrowing in conditions where you have low national debt." |
| The Liberal Democrat leader, Nick Clegg, is also due to give more details of the tax breaks his party wants to give lower and middle earners, funded by closing tax loopholes used by the wealthy and pension allowances for higher rate taxpayers. | The Liberal Democrat leader, Nick Clegg, is also due to give more details of the tax breaks his party wants to give lower and middle earners, funded by closing tax loopholes used by the wealthy and pension allowances for higher rate taxpayers. |
| The Lib Dems have consistently called on the government to cut taxes on low and middle incomes Nick Clegg | The Lib Dems have consistently called on the government to cut taxes on low and middle incomes Nick Clegg |
| The Daily Telegraph reports that one of the key elements of the government's tax-cutting package will be a decision to postpone planned increases in vehicle excise duty - a move which its headline describes as a "U-turn" on a "poll tax on wheels". | The Daily Telegraph reports that one of the key elements of the government's tax-cutting package will be a decision to postpone planned increases in vehicle excise duty - a move which its headline describes as a "U-turn" on a "poll tax on wheels". |
| The duty increase for higher emissions cars bought between 2001 and 2006 - announced earlier this year - has proved contentious, with the Conservatives describing it as retrospective and unfair. | The duty increase for higher emissions cars bought between 2001 and 2006 - announced earlier this year - has proved contentious, with the Conservatives describing it as retrospective and unfair. |
| Labour has described the report as speculative and said all tax changes must wait until the chancellor's pre-Budget statement when Alistair Darling will update MPs on the state of the public finances. | Labour has described the report as speculative and said all tax changes must wait until the chancellor's pre-Budget statement when Alistair Darling will update MPs on the state of the public finances. |
| The Lib Dems have long called for tax cuts for low and middle income earners to be paid for scrapping tax loopholes for the wealthy. | The Lib Dems have long called for tax cuts for low and middle income earners to be paid for scrapping tax loopholes for the wealthy. |
| The party's leader Nick Clegg said any proposed tax cuts had to be "big, permanent and fair". | The party's leader Nick Clegg said any proposed tax cuts had to be "big, permanent and fair". |
| "The Lib Dems have consistently called on the government to cut taxes on low and middle incomes," he said. | "The Lib Dems have consistently called on the government to cut taxes on low and middle incomes," he said. |
| "It is high time ministers started to listen." | "It is high time ministers started to listen." |
| The Tory proposals come as a poll for the Times suggested their lead over Labour has fallen sharply in recent weeks - from 15 points a month ago to six points now. | The Tory proposals come as a poll for the Times suggested their lead over Labour has fallen sharply in recent weeks - from 15 points a month ago to six points now. |