Our Plan
Our long-term economic plan is building a stronger, healthier economy and secures a better future for Britain by:
- Reducing the deficit so we deal with our debts, safeguard our economy for the long term and keep mortgage rates low.
- Cutting income taxes and freezing fuel duty to help hardworking people be more financially secure.
- Creating more jobs by backing small business and enterprise with better infrastructure and lower jobs taxes.
- Capping welfare and working to control immigration so our economy delivers for people who want to work hard and play by the rules.
- Delivering the best schools and skills for young people so the next generation can succeed in the global race.
Cutting Taxes
We are cutting taxes to help businesses grow and take on more people:
- £2,000 off National Insurance – a tax on jobs – for business. Our Employment Allowance has cut the jobs tax of every business by up to £2,000. This means 450,000 small businesses – that’s one third of all employers – will pay no jobs tax at all in 2014/15. We’re also abolishing the jobs tax on under 21s from April 2015 and on apprentices under 25 from April 2016 – making it easier for businesses to employ young people.
- Cutting Corporation Tax for businesses – so we attract investment and companies to Britain. We are cutting Corporation Tax from 28% to 20% so that it’s the lowest in the G20. This will help attract the businesses that create jobs to Britain – providing families with more stability and security.
- 385,000 small firms paying no business rates at all because of our doubling of rate relief. From October 2010 to April 2016 small business rate relief has been doubled – helping more than half a million small firms, with an estimated 385,000 small firms paying no rates at all. A further 190,000 business will benefit from tapering relief.
- We’ve doubled the annual investment allowance to £500,000 until the end of 2015. Over 99% of businesses will face no upfront tax when they invest in their future. We’re also increasing the tax reliefs available to small businesses for research and development.
A Britain That Works
To build a Britain that rewards work, we will:
- Cut income tax for 30 million people and take everyone who earns less than £12,500 out of income tax altogether.
- Back aspiration by raising the 40p tax threshold – so that no one earning less than £50,000 pays it.
- Deliver tax free childcare and a tax cut for married couples – to help families get on in life.
- Keep taxes low for working people and their families by continuing to cut the deficit and live within our means.
- Ensure that those who can afford it pay the most in tax, and continue to crack down on tax avoidance and tax evasion.
Your Savings
Calculate how much income tax you will save: