MP for Beverley and Holderness, Graham Stuart, has written to newspapers in the East Riding outlining the work the new Government has done to promote and protect business.
The letter reads: “As we approach the government’s first 100 days in office I thought I’d let your readers know what the coalition has done to reverse the rise in unemployment left by Labour particularly by support for smaller businesses.
“First off we’ve moved to stop tax rises on small and medium sized (SME) businesses.
“The previous Government wanted to hit SMEs with a tax hike on both the small profits rate and National Insurance Contributions (NICs). Instead this Government will reduce the small profits rate to 20%, instead of the last Government’s planned increase to 22%, from April 2011 and reverse the planned increase in National Insurance Contributions.
“Indeed the threshold for employer NICs will rise by £21, above indexation. This will increase the number of employees for whom employers pay no NICs by 650,000.
“Finally there will be a review of small business taxation, including IR35 regulations, to create a simpler, more predictable tax regime.
“Red tape and over regulation will also be peeled away to allow business to flourish. The most obvious way this will be done is by introducing a system of regulation control whereby Ministers must first show how they will reduce the existing burden of regulation before bringing forward new regulations.
“Alongside this will be a review of all regulations the last Government scheduled for introduction over the coming year.
“There will be help for new firms. For the next three years new businesses in Yorkshire will not have to pay the first £5,000 of class 1 national insurance contributions in the first year that they employ someone. This will encourage new jobs and new businesses.
“Rules will also be relaxed to allow social tenants to start their own businesses at home.
“There will be better access to funding with the Enterprise Finance Guarantee (EFG) increased by £200 million to support £700 million of additional lending until 31 March 2011.
“And a Growth Capital Fund is being created to support established businesses wanting to invest for the future.
“Together these measures represent positive action which will help the bottom line of small and medium-sized businesses across the country and across Yorkshire.
“Despite the disastrous inheritance left by Labour even the first 100 days have seen positive action to get Britain working again and make sure more people in Yorkshire have a job and a positive future.”
