The Federation of Small Businesses (FSB) is requesting the coalition government expand the employment tax National Insurance Contributions holiday so that companies with up to four personnel benefit. It is assumed this might stave off some of the unemployment woes. The benefits of this tax exemption are currently extended to start-ups that hire as many as five people.
John Walker, National Chair of FSB, stated, “Inflation is far higher than anticipated and unemployment is causing great grief. Small businesses must look to additional resources for growth besides the customer. The government should aid them in their growth. Credit must be given to government for current measures, but more needs to be done.”
“If National Insurance were cut small businesses would be able and willing to hire more people, giving a big strike against unemployment. The National Insurance Contributions holiday must be extended by the government to solve these problems.”
“The government puts the burden on the shoulders of the private sector, but if they do not put the correct framework in place, how can businesses aid to recovery of the economy.”
More than 3/4 of businesses surveyed by the Forum of Private Business last month considered the current tax system a deterrent from small businesses hiring and so unemployment increases. This is due to the repeated increases in National Insurance and the overly complex payroll tax system.