The Conservative Party has backed off plans to cut red tape to the tune of £14bn by saying it is conceivable that not a single proposal from its policy group will be adopted.
Philip Hammond, shadow chief secretary to the Treasury, also told the BBC’s Newsnight programme that his party are now considering merely 'good ideas' from its economic competitiveness policy group.
The news may disappoint John Redwood, the former cabinet minister who, as group chairman, was tasked 20 months ago to outline business and tax policies for the Tory manifesto.
It will certainly dampen the spirits of contractors: the group proposed on Friday that IR35 tax laws on providers of personal services should go, and that small business tax should be fixed at 20%.
As pledged in March, Tory reform to corpation tax for firms with profits of under £300,000 would effectively reverse the hike imposed by Gordon Brown in the Budget.
George Osborne, shadow chancellor, has described the proposals of the group, which was set up by David Cameron, as "imaginative."
The shadow cabinet will now decide which of the recommendations from Mr Redwood and his team should become official party policy.
Aug 22, 2007
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