Tory Tax Cuts

November 11, 2008

David Cameron this morning set out the Conservative party’s proposals for dealing with rising unemployment by giving employers a £2500 tax cut in the national insurance they pay for each person they recruit who has been jobless for three months. The effect of this proposal would create 350 000 new jobs and be worth £2.6 billion to employers and is funded out of the money that would otherwise be spent on unemployment benefits.

This is a funded tax cut that helps businesses and equally important gets those people unemployed for a short period back into work. Cameron has understood that short term unemployment very quickly turns to medium then long term unemployment with the inevitable effect that skills acquired are lost and the attractiveness of that employee to potential employers diminishing with time.