Election 2010: Tories confirm 'small business boost' with 2yr NI waiver

The Tories have confirmed new businesses will pay no National Insurance (NI) in their initial year for the first ten employees, during the opening two years of a Conservative government.

Unveiling its manifesto today, the party pledged to support small businesses through the recovery if it wins power at the 6 May General Election.

In addition to the employers' NI holiday, it would make small business rate relief automatic.

The Tories would also support aspiring entrepreneurs through a 'Work for Yourself' programme to give unemployed people direct access to business mentors and substantial loans.

It would also aim to deliver 25% of government research and procurement contracts through SMEs by cutting the administrative costs of bidding.

The minimum wage would stay under a Tory government, and the party says it would work to reduce the "very high marginal tax rates faced by many people on low incomes who want to return to work or increase their earnings".

Today's announcement at Battersea Power Station follow Labour's manifesto launch yesterday.

The Lib Dems will unveil their alternative policy pledges tomorrow.