Conservatives 'will waive NI' on new jobs

Jobs created by new businesses in the first two years of a Conservative government would not attract employers' National Insurance contribution, the party claims.

Shadow Chancellor George Osborne told the Conservative conference in Manchester that this would extend to include up to 10 jobs created by each new firm in its first year of operation.

He added that the tax break for new businesses would create up to 60,000 jobs over a two-year period, if the Conservatives were to win the general election next year.

The measure is designed to give entrepreneurs the confidence to take on staff and grow their company during its early days. Osborne promised "clear and simple rules" to ensure that the jobs created are "genuinely new".

The proposals come against the Conservative promise to 'Get Britain Working', which has seen the party's website hosting a free job search engine from software development company Zubed.

Mr Osborne said that a Conservative government would send out a message "loud and clear" to potential investors is that the UK "is open for business".

CBI deputy director-general John Cridland welcomed the proposal.

"Many business people are put off hiring their first employee by the sheer level of taxes and red tape," he said.

"This proposal should help new firms take bolder steps in creating jobs, and would give a much-needed boost to UK entrepreneurs looking to grow a business."

However, the Forum of Private Business was more cautious about the proposal.

Matt Goodman, the group's policy representative, said: "We will examine the savings that will need to be made to pay for this initiative, but welcome it in principle as a genuine stimulus to employment, small business growth and sustained economic recovery."

IMAGE AP Photo/Jon Super