In the 2017 Budget the Tories helped working families at the expense of contractor dividends. It appears that in the next election, Theresa May will also concentrate on helping working families but this time there will be no attack on PSCs.
In an interview Theresa May said that the Conservatives “absolutely want to reduce taxes” on such families, which is likely to mean those on middle and low incomes.
PSCs will welcome a new vow to freeze VAT as Theresa May said in Preston on Sunday “In relation to specific taxes, we won’t be increasing VAT.”
The pledge on VAT was unexpected and came after John McDonnell Labour’s shadow chancellor said that Labour would not be increasing VAT and challenged the PM to give the same commitment.
As the Tories did not make their commitment until after Labour, Labour sources were claiming that the Tories had been bounced into making the announcement.
However, despite this a poll obtained by the Times Newspapers shows that as far as business is concerned the Tories are still the party to beat. Business owners are over three times more likely to vote for the Tories than to vote for Labour. A survey commissioned by the Funding Circle reportedly found that 41 per cent of business owners intend to vote for the Tories whilst just 13 per cent said they intended to vote for Labour.
Labour’s lack of support from businesses comes after the party had made a pre-manifesto pledge to raise corporation tax by up to 8 per cent to provide a £1.5 billion cash injection for the NHS.