FSB Demands Reduction Of National Insurance Contributions
UK small businesses request a reduction of National Insurance Contributions following government changes to the Job Retention Scheme.
According to the Federation of Small Business (FSB), small businesses employ 60% of the private sector. With many jobs already lost in the past few months, it is vital that small businesses are given the opportunity to create jobs in the future, particularly for those that are out of work.
“If we want them creating new, future-proofed roles, we have to bring down the upfront costs of hiring. That starts with reducing Employer National Insurance Contributions, which serves as a jobs tax, by cutting rates or increasing the targeted Employment Allowance,” said Mike Cherry, national chairman of the FSB.
“As the Job Retention Scheme is brought to an end, NICs should be brought down to protect jobs.”
The government is due to put an end to the Job Retention and Self-Employment Income Support Schemes in October 2020, which have been a huge success in protecting the livelihoods and future of many businesses.
However, the FSB says that, despite this, there are still some businesses that have not been helped by either of the schemes throughout the past five months.
“Swift implementation of, and straightforward access to, the Government’s new apprenticeship, traineeship and Kickstart initiatives is also a must.
“At the very least, we believe it is time for the Government to bring forward a rescue package for those who have been left out. We look forward to a truly pro-business Budget in the months ahead. Now is not the time for measures that will stifle a small business community that will be central to our economic recovery,” Cherry said.
You might also want to find out about the Government’s Covid-19 support package for startups.