General Election

18th May 2017

General Election: Which manifesto helps TechCo’s ?

With the 8 June general election fast approaching, directors of technology companies will be scanning the main manifestos to consider which party is potentially offering the most useful new policies for their business:

Conservatives (link to 84 page manifesto)

Running a balanced budget by the middle of the next decade.
Reforming business rates.
Reducing red tape.
National living wage increased to 60% of median earnings by 2020.
Protecting gig economy workers.
Further reduce tax evasion, by tougher regulation of tax advisory firms.
Make executive pay packages subject to annual shareholder votes.
To turn the UK into the most innovative country in the world (via investing at least 2.4% of GDP in R&D within 10 years, aiming for 3% beyond that). Further incentives to be offered under EIS and SEIS share schemes.
Creating a £23 billion National Productivity Fund to improve productivity (including R&D).
Aiming for 33% of Government spending to be with SME’s by the end of the current Parliament.
Developing a Digital Charter, to balance freedoms with protections.
By the end of 2017 for 95% of premises to have access to superfast broadband. Further fibre spine connectivity targets beyond that,

Labour (link to 124 page manifesto)

Income tax rises for those earning over £80k pa (£80k to £123k @ 45%, >£123k @ 50%).
Businesses which pay employees over £300k pa to face a 2.5% surcharge (rising to 5% where pay exceeds £500k pa).
Larger corporates to pay corporation tax at 26% instead of the current 19%.
Small businesses (turnover < £85k) to be excluded from the planned introduction of Making Tax Digital.
£250 billion investment in our transport, energy and digital infrastructure over the next 10 years (including promising superfast broadband to all households by 2022.
To appoint a Digital Ambassador, to liaise with technology companies, “to promote Britain as an attractive place for investment and provide support to start ups to grow and prosper in the digital age.”
To establish a National Investment Bank, with £250bn of capital, to fill current lending gaps to small higher-risk R&D intensive businesses.
To ensure 60% of the UK’s energy by 2020 comes from zero carbon or renewable sources.
Aim to spend at least 3% of GDP on R&D by 2030.
Banning of zero hours contracts.
Raise the minimum wage to the living wage.
Banning umbrella companies.

Liberal Democrats (link to 95 page manifesto)

A second referendum on whether or not to leave the EU, once Brexit terms have been negotiated.
1p rise in income tax.
£100 billion of infrastructure spending.
Reform of capital gains taxes (including entrepreneurs relief) and dividend taxes.
Increase corporation tax back up to 20%.
Ring fence the government spending science budget.
Build on the success of Tech City, Tech North and the Cambridge tech cluster with a network across the UK acting as incubators for technology companies.
New tax support to encourage the creative industries.
Modernise employment rights, to fit in with the gig economy.
Banning of zero hours contracts.
In 250+ employee listed employers, giving staff the right to request shares.