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George Osborne reveals plans to axe NI for new firms

Conservative Shadow Chancellor George Osborne has announced plans to axe National Insurance for new businesses during the first two years of a Tory government.

If the Tories win the next general election, Osborne says the party will introduce the tax break for the first ten employees a new business hires during its first year, providing it launched in the first two years of a Conservative government.

Osborne says the scheme would encourage new entrepreneurs and generate around 60,000 new jobs by 2011.

He says: “This is just another example of the Conservatives being the party of jobs at a time when Labour are the party of mass unemployment.”

But Liberal Democrat Shadow Chancellor Vince Cable says: “The numbers Mr Osborne thinks this policy would help seem to have been plucked out of thin air.

“Many small businessmen will be shocked to learn that the Tories believe a start up business has a wage bill of a quarter of a million pounds.

“What is most worrying is that this tax break for new businesses would mean that they will be able to undercut existing small companies who are already struggling.”

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