The chancellor has ruled out tax cuts before the next election, much to the disappointment of some. During an interview with the Daily Telegraph, George Osborne said that his focus would be on helping businesses in the United Kingdom, which started on Monday during the Conservative Party conference. He also indicated that his plan to reduce the deficit was flexible, and would take longer than expected as growth of the UK economy was slow.
A number of initiatives have been disclosed, which include doubling the length of employee service before employers can be taken to a tribunal. This move won’t be popular with trade union officials but businesses had made demands for this legislation to be amended as part of employment law reform. It is hoped that the move will encourage businesses to employ more staff without fear of being taken to an employment tribunal.
As the reduction of government borrowing may now take longer than first planned, the chancellor has confirmed that there won’t be any tax cuts before the next election, although he is a firm believer of low taxes. Osborne also confirmed that the 50p rate of tax wouldn’t be discussed until 2012, although he wouldn’t confirm whether there would be a ‘mansion tax’. He did express frustration following the introduction of the Agency Workers Regulation which will cost businesses in the UK £1.5 billion a year. Although the government had looked at ways to stop the regulations being introduced, nothing could be done. With his focus firmly on businesses he said:
“We must not be anti-business, an anti-enterprise country.”
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