FSB voices concern over NIC hikes

Date: 25th March 2010

Support for small businesses, announced in yesterday's (March 24th) Budget, has been welcomed by one industry body.

The Federation of Small Businesses (FSB) said that it was pleased to see that the chancellor is to remove 345,000 small firms from the business rate system.

According to the organisation, business rates are the third highest outlay for small firms, and the move will come as a "huge relief" to many enterprises.

The FSB also welcomed the decision to stagger any tax increases on fuel after Alistair Darling announced one penny increases in April and October, rather than a larger single rise.

However, the FSB was unimpressed that the chancellor intends to press ahead with plans to increase National Insurance contributions (NICs), saying this will cost the economy 57,000 jobs.

John Walker, FSB national chairman, said: "Small firms are key to furthering economic recovery as the UK's largest employer and we are concerned that through continuing plans to increase employer NICs and not introducing a NIC holiday to firms employing less than 50 staff who take on more employees, it will increase pressure on struggling firms meaning they will not be able to take on additional staff."