FSB welcomes NIC reversal

Date: 25th May 2010

The Federation of Small Businesses (FSB) has welcomed plans to halt an increase in National Insurance contributions (NIC).

According to the organisation the decision will help to safeguard 57,000 jobs in the UK.

The comments follow the first Queen's Speech of the new coalition government, which was used to announce plans to save jobs and support the economy.

John Walker, national chairman of the FSB, said: "Small firms are already flexible employers, employing more women and more part-time workers than big businesses and plans to remove barriers to flexible working must acknowledge this.

"Changes to the one per cent increase in employers' NICs will help safeguard 57,000 jobs, continuing to strengthen the recovery."

Mr Walker also called on the government to give small businesses the same protection as domestic consumers with regard to information from energy suppliers.

A recent FSB survey revealed that small firms are among the most responsible employers with 32 per cent of employees working part-time, compared with just 14 per cent in larger organisations.

Posted by Emily Smith