We must first ensure that everyone is paid fairly for their work. It was a Conservative government that introduced the National Living Wage and as a result, people across the United Kingdom now receive a minimum of £7.50 an hour. A new Conservative government will continue to increase the National Living Wage to 60 per cent of median earnings by 2020 and then by the rate of median earnings, so that people who are on the lowest pay benefit from the same improvements in earnings as higher paid workers.
Keeping taxes as low as possible
Paying your fair share of tax is the price of living in a civilised democracy but politicians should never forget that taxes are levied on businesses that employ people, and individuals who work hard and face tough decisions about how they spend their money.
The Conservatives will always be the party that keeps tax as low as possible and spends the proceeds responsibly. It is our firm intention to reduce taxes on Britain’s businesses and working families.
By 2020, we will, as promised, increase the personal allowance to £12,500 and the higher rate to £50,000. We will continue to ensure that local residents can veto high increases in Council Tax via a referendum. And we will not increase the level of Value Added Tax.
Corporation Tax is due to fall to seventeen per cent by 2020 – the lowest rate of any developed economy – and we will stick to that plan, because it will help to bring huge investment and many thousands of jobs to the UK.
We know that the business rates system presents considerable challenges to some smaller companies. That is why we have supported those businesses most affected by the recent revaluation of business rates. That is not all we will do. We will make longerterm reforms to the system to address concerns about the way it currently works. We will make sure that revaluations are conducted more frequently to avoid large changes to the bills that businesses face, and explore the introduction of self-assessments in the valuation process. To ensure the system is sustainable for the future we will also conduct a full review of the business rates system to make sure it is up to date for a world in which people increasingly shop online.
A good tax system is not just about the headline rates of tax, however, but about its simplicity. Our system remains too complicated, making it hard for people – especially self-employed people and small businesses – to assess their taxes. We will therefore simplify the tax system
Competitive and affordable energy costs
A successful industrial strategy requires competitive and affordable energy costs. We want to make sure that the cost of energy in Britain is internationally competitive, both for businesses and households.
We will therefore commission an independent review into the Cost of Energy, which will be asked to make recommendations as to how we can ensure UK energy costs are as low as possible, while ensuring a reliable supply and allowing us to meet our 2050 carbon reduction objective.
Our ambition is that the UK should have the lowest energy costs in Europe, both for households and businesses. So as we upgrade our energy infrastructure, we will do it in an affordable way, consistent with that ambition. And because for British companies, an energy-efficient business is a more competitive business, we will establish an industrial energy efficiency scheme to help large companies install measures to cut their energy use and their bills.
In Summary:
- Increase the National Living Wage
- Deliver new rights and protections in the workplace
- Increase the personal tax allowance to £12,500 and the higher rate to £50,000
- Ensure energy costs are as low as possible by capping rip off energy tariffs
