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Small businesses say NO to National Insurance hikes

Small business groups form a resounding NO to National Insurance hikes

Small business groups form a resounding NO to National Insurance hikes

A significant number of small businesses throughout the UK are urging the government to retract its 1% increase in National Insurance Contributions (NIC) planned for April 2011.

The British Retail Consortium (BRC), British Chambers of Commerce (BCC), Federation of Small Businesses (FSB) and the Forum of Private Business (FPB) are all lobbying the government to rethink the NIC increase. The increase is being described by the groups as a “tax on jobs” which they fear will put companies off from employing more staff at a sensitive point in the UK’s economic recovery.

The Director General of the BCC, David Frost, stated:

“Raising a damaging tax on business, like NICs, will be counter-productive. It will mean fewer jobs and less tax revenue in the long-term.”

The Chairman of the FSB, John Wright also commented, stating that the small business groups are calling on the government to take steps to make it easier for the UK’s 4.8 million small firms to employ further staff. He added:

“The government can give the economy a real helping hand by freezing National Insurance and helping to encourage small firms to grow and take on additional employees.”

In related news this week, the British Retail Consortium (BRC) has also urged the Chancellor of the Exchequer, Alistair Darling, to extend the Empty Property Rate Relief and cut non-vital public sector spending.

The Director General of the BRC, Stephen Robertson, commented:

“Some tax rises maybe inevitable, but no government should rely on tax hikes to reduce borrowing. The increases would have to be so large that customers’ ability to spend would be wrecked – risking a double dip recession.”

Related articles:

Business coalition forms to fight National Insurance rise

Banks still letting small businesses down

Retail sales drop at sharpest level for 18 months


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Photo by Michelle Meiklejohn

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