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

• 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.”

ENDS

For further information, please contact the CCHQ press office on 020 7984 8121.

Notes to Editors

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.

BCC responds to Conservative Party business proposals

Responding to proposals unveiled by the Conservative Party, Director General of the British Chambers of Commerce, Dr Adam Marshall said:

Business rates:

“We have continually highlighted the damaging impact that upfront business costs are having on companies across the UK – and Chambers have long called for the reform of Britain's broken Business Rates system. Increase after increase in the cost of doing business is contributing to the stall in business investment: in five out of the last six quarters, business investment has fallen.

“Recent Chamber research shows that 35% of businesses said they were likely to reduce or completely cancel investment as a result of business rates increasing this year. Businesses will therefore be pleased to see this issue coming to the fore in the election campaign and will welcome a commitment from one of the main parties to launch a fundamental review of the business rates system.

“However, the business community will judge the success of any review of business rates on whether it delivers a fundamental reduction in the burden rates place on our businesses. A streamlined business rates system could improve incentives for businesses to invest – but only if it takes account of real-world economic conditions and makes rates simpler for businesses.”

Employer Allowance:

“Small businesses will be encouraged to see proposals to raise the Employment Allowance from £3,000 to £4,000. Yet even if this is introduced, it would only be a small step to compensate businesses for the relentless rises in employment taxes and costs that businesses have experienced in recent years.”

R&D tax credits:

“BCC research in 2018 found that 23% of Chamber businesses had made use of R&D tax credits, and over three-quarters of them (77%) said they were effective in introducing new products, services, and processes.

“Businesses will be pleased to see proposals to increase the rate and scope of R&D tax credits – but they must be made simpler so that more firms can benefit from them.”

On Structures & Buildings allowance

“With survey after survey showing that business investment is at some of its lowest levels in a decade, and difficult times for the construction sector in many parts of the UK, an increase in capital allowances such as the Structures and Buildings Allowance would be well-received by many businesses.”