Tories attack Labour's ebusiness record

The Conservative Party has blasted the government for its heavy handed regulation of ecommerce and for failing to understand the cost savings ebusiness could give the government itself.

David Heathcoat-Amory, Shadow Trade and Industry Secretary, said: "Labour's failure to understand this dynamic sector has led to a series of ill-judged stealth taxes and regulations. Labour was slow off the mark in legislating for electronic signatures, but was quick to impose IR35 and National Insurance contributions."

The Conservatives have pledged to repeal IR35 if elected, and to give tax breaks on share options.

But a Cabinet Office spokesman defended the government's record, saying that it was committed to developing an effective, light-touch regulatory framework for e-commerce, which was welcomed by the independent Better Regulation Task Force. He also denied that the Regulation of Investigatory Powers Act placed unreasonable burdens on business.

He added that despite IR35, the UK tax regime compared well with other countries, and claimed that a recent survey of 125 blue chip companies employing contractors showed that 90 per cent of them felt that IR35 had no affect on the contractor market.

Shadow Cabinet Office Minister Andrew Lansley also claimed that the Conservatives could cut the cost of government by 10 per cent through simple, commercially proven principles.

The Party's plan includes outsourcing more services to the private sector, using online procurement to cut government costs and revising how public contracts are awarded. The Tories said they would also look to deliver government services through new channels such as digital TV.