FSB calls for UK-wide NI holiday
According to a recent study by the Federation of Small Businesses (FSB), 64% of firms in the South East are likely to be working below capacity.
With the region currently excluded from the recently announced NI holiday, the FSB has warned that entrepreneurs in the area may be dissuaded from starting up and that existing small businesses may not have the support they require to expand.
‘With small firms in the South East most likely to be working below capacity, this shows how wrong the Government is to not include this vital region, as well as the East and London, in its proposals for a National Insurance holiday for start-up businesses,’ said John Walker, FSB National Chairman.
‘While we support the policy we believe that it should be extended to be UK-wide and be available for existing businesses too. With 600,000 public sector jobs expected to be lost, stimulating private sector job creation, especially in small firms, will be vital to rebalancing the economy.’
The regional NI holiday was announced by the Chancellor, George Osborne, in the Emergency Budget last month. Under the proposals, employers eligible for the scheme will not have to pay the first £5,000 of Class 1 employer NICs due in the first 12 months of employment.
This will apply for each of the first 10 employees hired in the first year of business. Subject to meeting the necessary legal requirements, the scheme is intended to start no later than September 2010.
The targeted countries and regions will be: Scotland, Wales, Northern Ireland, the North East, Yorkshire and the Humber, the North West, the East Midlands, the West Midlands and the South West.
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Date: 21-07-2010