Statement from The Conservative Party

It is vital that Government provides the right environment to nurture and support the talented people engaged in the new economy who can help to make Britain a leading player in this market. Labour's instinct is to regulate and intervene, precisely the policy that will drive this sector abroad.

Conservatives will remove damaging barriers to growth and offer targeted incentives which will encourage the growth of an industrial sector which depends entirely on free market flexibility, minimum regulation and an absence of clumsy government initiatives.

Repeal IR35
Despite promising before the election to give 'Britain's entrepreneurs and small businesses the backing they deserve', Labour are destroying enterprise through this new stealth tax on the self-employed. IR35 was a sly measure which turned into a disastrous attack on the IT sector. In seeking to eliminate the bad it destroys so much that is good. Conservatives have opposed IR35 from the start. We are the only party with a manifesto commitment to repeal IR35.

Review the RIP Act
The RIP Act seeks to give the Home Office and the police updated powers of interception to catch ever more sophisticated criminals. Conservatives support this objective but do not accept the enormously damaging record keeping and other unwarranted burdens the Act places on the IT sector. We will review the operation of the Act and remove unnecessary burdens as required.

Employment Agency Regulations
These unnecessary regulations are the latest example of Labour meddling in the labour market and reducing much needed flexibility. Once again the government is bringing forward damaging measures where there is no need for change. Conservatives recognise the vital role recruitment agencies play in meeting the needs of a flexible and dynamic economy. Labour fails to understand that this is a competitive industry with low barriers to entry. Rather than improving competition, the effect of these regulations will be to hit predominately small businesses with further regulation. We will not introduce these regulations.

Improve tax regime for share options
Share option schemes provide a useful incentive for new businesses, which may not have the cash to pay competitive salaries, to attract such individuals away from well- paid and secure employment. The existing cap of £30,000 for Approved Share Option schemes limits their use while Labour's increase in tax on Unapproved Share Options schemes and the complexity of their new Enterprise Management Incentive scheme have compounded the problem.

We will increase from £30,000 to £100,000 the maximum value of the options which an employee can receive under an Approved Share Option scheme if they work a business with a value of up to £100 million.