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01 March 2010

Business organisations urge small firms to say no to the National Insurance rise

Reference number: PR/2010/10

FSB News Release

PR 2010 10


Issue date: Monday 01 March 2010


Business organisations urge small firms to say no to the National Insurance rise

The Federation of Small Businesses (FSB) has joined forces with other business and employment organisations to call on small firms to sign a petition urging the Government to freeze National Insurance.

Research by the FSB with the Centre for Economics and Business Research (CEBR) found that increasing employers'' National Insurance by one per cent will cost 57,000 jobs at a time of record unemployment figures, but will not give any substantial help to plug the Government''s gap in public finances.

The FSB wants to see businesses using the petition to persuade the Government to reverse the planned one per cent rise in National Insurance and put a halt on any future rises in the foreseeable future. Raising taxes on small businesses must be a last resort if they are to do their job of helping to put the country on a steady road to recovery.

John Wright, National Chairman, Federation of Small Businesses, said:

"This petition – calling for no rise in National Insurance Contributions – will tell Government that real action needs to be taken to really help tackle unemployment. The rise in National Insurance is a tax on jobs and will cost the country in thousands of jobs, as well as prevent small firms from taking on more members of staff at this crucial time in the country''s economic recovery.

"The FSB has been calling on the Government to take steps to make it easier for the country''s 4.8 million small firms to employ staff. The FSB knows that small firms want to recruit over the coming year, but are put off by taxes. 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."