Cameron due to set out tax cut plan
David Cameron is setting out details of the Tories' promised tax cut to help firms protect jobs as the economy heads into recession.
It is thought that the Conservative leader will propose a reduction in national employers' insurance contributions for small firms that retain or take on new staff.
The announcement comes as all three main political parties are holding out the prospect of a cut in taxes in a bid to keep economic activity going by boosting spending power.
An opinion poll showed Labour dramatically cutting the Tories' lead to just six points, compared to a 15-point Conservative advantage just a month ago, as Gordon Brown continues to win plaudits for his handling of the economic crisis.
The Populus poll for The Times puts Labour five points up on 35% while the Tories are down four points on 41%. The Liberal Democrats are up one on 16%.
Meanwhile, the Treasury refused to comment on a Daily Telegraph report that the Government was set to delay the introduction of a planned above-inflation increase in road tax which would see the annual charge for some cars rise by £245.
"We do not comment on speculation about what is in the Pre-Budget Report," a spokeswoman said.
In a speech on Monday, Mr Cameron said that the Tories' new measures would be aimed at encouraging businesses "to take on workers and to keep workers".
In an apparent refutation of Margaret Thatcher's policies of the 1980s, he rejected the idea that mass unemployment was an "unavoidable consequence" of recession and that all governments could do was to "pick up the pieces".
"The Conservative Party will not stand aside and allow unemployment to claim livelihoods and ruin lives on a massive scale. We will not walk on by while people lose their jobs," he said.
