That this house calls upon her Majesty's Government to extend the National Insurance Holiday (NICS) to existing businesses instead of providing the holiday to new businesses only.
Proposer: Simon Williams
Seconder: James Allen
Policy Responder: Mike Cherry
The Motion was passed
Personal Votes For: 106
Personal Votes Against: 45
Branch Votes For: 71,858
Branch Votes Against: 26,963
Proposer Simon Williams - We are proposing this motion as a means to create jobs and get the economy moving. In May 2010 during the emergency budget it was announced that all new firms under one year except for businesses in London, the South- East and the East were eligible to NICS holiday for under 10 employees. Approximately 40% of existing members tell us that they would employ more people if there were a reduction in NICS. This proposal is good for business, good for the Treasury and good for job creation. It has been estimated that the Treasury would gain a further £600,000 as a result of this measure.
Seconder - James Allen, will respond after the discussion.
Mike Cherry, Policy Response - The FSB has long urged the Government to remove NICS from new businesses with fewer than 10 employees. FSB policy feels that the current holiday does not go far enough and that the Government should extend the holiday to existing businesses with up to four members of staff that take on up to three to help stem the trend of rising unemployment. Existing businesses are often better able to employ than those in their first year of existence. In 2008 the FSB commissioned a report by the University of Westminster which found that SMES are more likely to employ people who have been unemployed for 12 months of more, those with fewer formal qualifications and those who are older.
Trevor Wood - Many start-ups don't employ in the first year so giving this holiday to existing businesses makes sense.
Peter Mordullen - Instead of this holiday, perhaps we should consider what would happen if we amalgamated NICS with income tax.
Chris Storey - I am concerned that East of England is exempt from this holiday as areas such as Ipswich have a high level of public sector employment and therefore will suffer under these cuts. We would like to see the holiday extended to the East.
Trevor Freeman - Agrees with the Principle but disagree with the specifics. We should want to stimulate growth not jobs. Lets consider what stops growth, a lack of skills and finance among many, this should be the focus.
Paul Kelly - Agrees with the principle but not the wording. This motion would help big business which we don't want to do; the wording needs to be more specific.
Karl Craig West - Likes this motion but doesn't understand why Conference is debating something that is already happening.
Mike Cherry - The motion was written in this way to reflect the current Government's policy. FSB policy argues that the holiday should be extended to existing as well as start-ups.
Peter Ashton - Agrees with the sentiment but feels that if we were able to get rid of half of the existing employment regulation it would be much easier to employ people and help growth.
Andy Bolton - I have a business that is a year old and it already employs 6 people. I agree with the sentiment but not the wording.
James Allen - When announcing this holiday the Treasury said that this was intended to help to re-balance the economy away from the focus on public sector employment and back onto the private sector. This Motion will help to further boost business and growth. I agree that the East should be included in this holiday; it should be extended to the whole country. This is a good policy for all and I hope that you will join me in supporting this motion.
Simon Williams - I would like to reiterate what was just said. We are not ignoring start-ups rather we are looking at extending it to existing businesses with up to four members of staff that take on up to three to help stem the trend of rising unemployment. Please support this motion.