Cameron Calls for 1p Cut in National Insurance
Conservative leader David Cameron is calling for a 1p cut in national insurance to help small businesses during the economic downturn.
He said the reduction should last six months for companies which employ four staff or fewer.
The Conservatives said the 1p national insurance cut could save a small business as much as £600, which, for example, could help pay the interest on an outstanding loan.
The change would cost the Treasury £225m and could be paid for out of an existing Tory commitment to cut complex tax reliefs and allowances, the party added.
Mr Cameron told BBC Radio 4's Today programme: "Good small business will be going to the wall unless they get help."
The national insurance reduction would "help with what's going to be an extraordinarily tough time".
He added: "To stop a downturn turning not just into a recession but a slump, we must save small businesses...
Mr Cameron also said he wanted a six-month VAT holiday for small and medium-sized firms and called on local authorities to pay small businesses within 20 days for their services, rather than 30.
ACS Chief Executive, James Lowman is today attending the Small Business Survival Summit, organised by Mark Prisk, Small Business Minister for the Conservative Party at which David Cameron is expected to announce the plans.