The two would-be Conservative MPs for Norwich have called on the Government to introduce immediate tax cuts to create new jobs under an innovative scheme which would boost the Norwich and Norfolk economy and help ease unemployment in the current financial crisis.
Both Antony Little, Conservative PPC for Norwich South, and Chloe Smith, who is standing for the Tories in Norwich North, have said that the tax cuts for new jobs would create around 350,000 new jobs over the next year by giving tax breaks worth £2.6 billion to employers, something which would help local firms in Norwich.
Under the Conservative plans employers who take on people who have been unemployed for over 13 weeks would receive credit worth £2,500 against Employers’ National Insurance Contributions.
Safeguards to prevent abuse would be introduced to stop companies from fraudulently claiming the tax cut by making staff redundant.
Cllr Little, who is also Conservative group leader at City Hall, said that the economy was at risk and urgent measures were needed to deal with the recession.
He said: “This scheme will use money that would otherwise be spent on welfare payments to give tax cuts worth £2,500 per head over a year to employers who hire new workers who have been unemployed for three months or more.
“It will be revenue neutral because the money would come from lower spending on unemployment benefits. Simple safeguards would prevent abuse by ensuring that only genuinely new jobs would be eligible.”
Both Cllr Little and Miss Smith have also challenged Charles Clark and Ian Gibson, the current Norwich Labour MPs, to support the Tory proposals which would help the local economy.
Miss Smith said that Norwich jobs and businesses would be better off under the Conservative proposals and that the Government could not be trusted.
She said: “At the moment far too many jobs, businesses and livelihoods in Norwich are at risk and it’s clear that we cannot rely on Gordon brown to produce the positive policies needed to cope with recession. Change is desperately needed and the Conservatives have already announced a comprehensive package of support to help business stave off job cuts and help our economy recover from recession.
“An immediate tax cut for new jobs will provide the economy with even more support in a fiscally responsible way and would reduce the impact of recession on families across Norwich.”