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13 June 2017

Small firms squeezed by inflationary pressure - FSB

Responding to the ONS announcement that the Consumer Prices Index (CPI) remains above the Government’s 2% target at 2.9%, Wilfred Mitchell OBE, Northern Ireland Policy Chair at the Federation of Small Businesses (FSB), said: 

“Operating costs for small firms and the self-employed are now at their highest in four years. Small business owners and their staff are having to absorb these hikes personally and have less and less capacity to invest for growth. Our members are also under pressure from spiralling employment costs.

“Support from the government is urgently needed including an increase in the Employment Allowance to £4,000, which is long overdue. A freeze on fuel duty and Insurance Premium Tax (IPT) would also go some way to relieving the inflationary pressure that has been squeezing small businesses for months now. 

“With all these cost pressures, now is certainly not the time to revisit the Government’s failed proposal to hike national insurance rates on the UK’s 4.8 million self-employed.”      

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