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61 Asian businesses support Tory policy

Indian Business

61 key figures in Asian business have shown their support for the Conservative party in the run up to the election by adding their names  to the list of those who oppose Labour’s plans to raise NIC’s (national insurance contributions)

The 61 signatories believe that the government should reduce taxes so that spending power increases.  They argue that this would be better in ensuring long term stability for the economy.  Prime Minister Brown wants to increase NIC’s for those on annual salaries of more than £20,000 a year by 1%

Speaking to The Eastern Eye Hussein Lalani commercial director for the 99 stores, commented on the move saying “Increasing national insurance is not good for entrepreneurial businesses , nor employers, nor employees.  It will have an effect on people’s spending power.  We do not believe it will boost the economy”

Business secretary and the man many believe to be the number two at Downing Street Peter Mandelson hit back at what Labour believes are unrealistic Tory proposals.  He stated:

“George Osborne wants people to believe that you can remove £6 billion from the economy this year and that will not set back the recovery, and that caution can be thrown to the wind with a series of tax giveaways in the following years and no one will have to pick up the bill”

In the run up to what will be one of the most closely fought elections for many years, the argument over proposed cuts or raising NIC contributions will prove to be one of the decisive issues in shaping the outcome.

by Richard Sudan

One Response

  1. No business votes for higher taxes so it is not surprising that business people are voting against the NI rise. So two points:

    It a time of austerity for all, shouldn’t the private sector shoulder at least some of the pain? After all, there is currently downward pressure on employment costs and the private sector is also benefitting from having more choice for what vacancies are open.

    Secondly, the next bout of recession will be in the public sector. This is fair enough, some parts require cutting. But in the regions that are hit hard I’m sure that some of the extra income will have to be used for new business and for the enlargement of existing companies.

    If the Conservatives don’t raise extra income elsewhere and do use the £6Billions savings to immediately pay off the deficit, that will cause severe regional recessions which will not benefit either the private or public sectors.

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