Labour has pledged to reverse the Government’s final cut in corporation tax to pay for a reduction in rates for small businesses.
Shadow Chancellor Ed Balls will also promise smaller firms they will be the first to benefit from future tax cuts if Labour takes power in the General Election reported Sky News.
Mr Balls is expected to say today that reversing the corporation tax cut would allow Labour to slash business rates on 1.5 million small business premises.
Labour argues that 17 small firms would benefit from the cut for every large business helped by the reduction in corporation tax.
The party argues the coalition spent £7bn over the last parliament cutting the main rate of corporation tax to the benefit of larger firms, while revenues from business rates rose by £3bn.
Mr Balls will visit a small business later today where he is expected to say: “Unleashing the potential of smaller businesses to grow, create more good jobs and raise living standards is a vital part of Labour’s better plan.
“This is part of our plan to deliver a simpler and fairer tax system for small businesses. This is the right priority when money is tight.
“And it will mean that the tax burden on small businesses will be lower with Labour than under the Tories.”
Mr Miliband faced a backlash over the advertisement in the Financial Times, published as Mr Miliband warned voters that leaving the European Union was a “clear and present danger” to British business.