Tories propose 1p national insurance cut

Date: 20th October 2008

Leader of the opposition David Cameron is set to call for 1p reduction in national insurance rates, the BBC reported this morning (October 20th).

The Conservative chief is proposing that the cut last for six months, in a move the party believes will help-out businesses during the economic turmoil.

According to the BBC, proposals for the cheaper rate - which would apply to firms with four employees or under - will be made in the run-up to an upcoming summit for small business leaders in Westminster.

James Landale, a BBC political correspondent, told the broadcaster's news service: "Labour and the Tories are competing for the prize of being the party with the best ideas for helping us through the economic slowdown."

Conservatives estimate that the 1p reduction in national insurance charges would save the small business sector as much as £600 each, which could help pay towards credit bills or accountancy costs.

Small to medium enterprises have until the end of this month to file a self-assessment tax return, or until the end of January if submitting online.