The Conservative Party is determined to reassert itself as the first party of business, says Peter Elson

THE Conservative Party is relying heavily on its long-term image of being business-friendly in the election.

The Tories have pledged to back Britain’s “doers and dreamers” who want to create business and wealth.

Party leader David Cameron promised a “new economic model”, which is based on tackling the deficit while avoiding new tax rises.

“We have always been the party of business and small and medium-sized enterprises,” said Esther McVey, prospective Wirral West Conservative MP.

“The simple line is that our goal is to make the UK a settled and stable economy in which we can grow businesses.

“Our first aim on getting into office is to stop the tax on jobs. This is the increase on National Insurance which will kill off the recovery.”

It is vital to make Britain a healthy environment for small businesses to grow, she believes.

“That is where the future engines of economic growth will be,” said Ms McVey, who is tipped to be a new Minister for Merseyside if the Tories win, following in Lord Heseltine’s footsteps.

The party also plans to cut corporate tax rates from 28p to 25p and the small companies rates from 22 to 20p.

Other ideas include exempting new businesses starting up in the first two years of a Conservative government from companies’ National Insurance for the first 10 employees.

“The reduction of red tape is absolutely crucial, with a one-in and one-out rule,” said Ms McVey.

“There can’t be a constant increase in regulations – it has to be reduced elsewhere if more rules comes in.”

The Conservatives have devised a “five-year road map” for the direction of business tax and forms.

“We also want to create an Industrial Office of Tax Simplification,” said Ms McVey.

Amid widespread fears of huge cuts in public spending on capital projects, Ms McVey said this could be off-set by extending government procurement.

“We want to extend government procurement on big public projects for SMEs with an aim of 25% of work going to them,” she said.

“But we can’t go on spending money that we haven’t got.

“When Labour came into power, it inherited a £37bn legacy from the Conservatives.

“It then went on to raid our pensions scheme for £150bn, which was the best in Europe.

“Gordon Brown also sold off our gold reserves at a rock-bottom £6.6bn, against all advice.

“Our budget deficit was £352bn in 1997, but rose to £527bn in 2007 and is now £952bn.

“What this means is that while we spend £20bn on law and order and £41bn on schools, our debt interest is £42bn.

“So we’re repaying more on our debt than education and twice as much as on law and order.

“It know we’ll never be debt-free, but we have to ask what’s the best way of putting engines of wealth back into driving the economy?” The Tories’ Work For Yourself programme would be bolstered with tax regulation support and mentors, such as the Prince’s Trust and Bright Ideas.

Engineering entrepreneur James Dyson’s report for the Tories made recommendations on how to make the UK a leading hi-tech exporter.