CPS research quoted by the Sun on Sunday

CPS research “Estimating the Employment Effects of Labour’s Corporation Tax Policy” was quoted by the Sun on Sunday. 

Ed Miliband is preparing to drop a “tax bombshell” which would obliterate 96,400 job, top Tories claim.

David Cameron and George Osborne joined forces to warn that Labour would cause “economic chaos” with their plans to hike levies on firms.

The PM and Chancellor seized on predictions from the Centre for Policy Studies that a Corporation Tax rise to 21 per cent would see 1,300 jobs cut in the first year of a Labour government.

That would soar to 96,400 if the tax was raised one per cent each year to 24 per cent by 2018/19.

Labour called the claim “nonsense”. But a shadow Treasury spokesman confirmed the party plans to raise the tax to 21 per cent for large firms – overturning years of cuts under Mr Osborne.

Labour said the move would fund a rate cut for small firms.

But Tories say Mr Miliband could hike the rate to 26.5 per cent. Their alert came as a leading business chief blasted Labour’s policy of hiking the top rate of income tax from 45p to 50p.

In a Sun on Sunday interview, British Chambers of Commerce director John Longworth said it “attacked aspiration”.

Date Added: Tuesday 10th February 2015