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FSB says small firms' hiring intentions are on-the-up

Tuesday, September 17, 2013 PR 2013 47

FSB News Release
PR 2013 47

Embargoed to 00.01 Tuesday 17 September 2013
FSB says small firms' hiring intentions are on-the-up
Small businesses are taking on more staff compared with last quarter according to the Federation of Small Businesses. The Voice of Small Business Index found that 15 per cent have increased their staff numbers in the third quarter of 2013. This is the highest figure reported since the Index began in 2010 and mirrors recent improvement in labour market figures.
Furthermore, all small businesses will be eligible for a cut of up to £2,000 in their National Insurance Contributions from April 2014 which should provide further encouragement to this trend. According to FSB research, small businesses will use the ‘Employment Allowance' to boost staff wages (29%), employ additional staff (28%) and invest in resources (24%).
Small firms can create more jobs for the UK economy, but they need greater support from government policymakers. This is more important than ever considering that nearly 900,000 people have been unemployed for more than one year while 960,000 young people remain out of work.  The FSB knows that the vast majority (88%) of unemployed people who enter the workforce do so by starting a business or working for an SME.
This will be the starting point for discussing ways in which the Coalition Government can encourage further job creation from small firms. The FSB will be debating this subject at the Liberal Democratic Conference during an event hosted with IPPR, the Institute for Public Policy Research.
John Allan, National Chairman, Federation of Small Businesses, said:
"Compared with a year ago, small businesses are employing more staff and are looking to expand in the near future. This points to growing confidence from the UK's small businesses.
"Our findings show that the Employment Allowance due to kick in next spring will have the desired effect. Through the measure, small firms are looking forward to taking on more staff, expanding their businesses and rewarding existing employees for their efforts.
"That said, the most recent unemployment figures show that long term unemployment, particularly among young people remains a concern. That's why we will be discussing what further action the Coalition Government can take to support the UK's small firms in creating jobs at the Liberal Democrat Conference."
Notes to editors:
1. The FSB is the UK's leading business organisation with around 200,000 members. It exists to protect and promote the interests of the UK's Real-Life Entrepreneurs who run their own business. More information is available at
2. The FSB and IPPR ‘Supporting Job Creators: What should the Coalition Do?' fringe event will be held on Tuesday 17 September at 6.15pm in Dochart 1 in the SECC, Glasgow.  
3. FSB spokespeople will be available from Liberal Democrat conference in Glasgow. Please contact the media team for interviews.
4. The FSB ‘Voice of Small Business' Index is a quarterly macro-economic report analysing the trends of small businesses in the UK market. To view the ‘FSB Voice of Small Business' Index please go to 
5. This report has been produced by the centre for economic and business research (cebr) for the FSB. The figures are based on a survey of FSB members, carried out by Research by Design, between 31 July and 12 August 2013 and received 2,330 responses. To find out more visit
6. The Employment Allowance data is based on an online survey carried out by Research by Design on behalf of the FSB. The survey of 1,068 members between 19 June and 3 July 2013. For more information 
7. The next Voice of Small Business Index will be issued on Friday 13 December embargoed to 00:01am Monday 16 December 2013.
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