Both the Government and the opposition have declared on a number of occasions, that the small business sector is the life blood of the UK’s economy and while it was inevitable that some unpopular tax increases would be included in the 2009 budget, plans to increase National Insurance, came as a complete shock to the SME sector.
Now, industry leading business groups are coming together to lobby the government into going back on their plans to increase the rate of National Insurance by 1%.
In a petition signed by many organizations representing small business, the group claims that increasing the rate of National Insurance all employers are obliged to pay, will hinder the UK’s economy at a extremely important point in its recovery.
Matthew Chambers, director of the Federation of Small Business comments ; “ This group has been formed to urge the government not to put a tax of jobs which, ostensibly, raising National Insurance will do. Small businesses that have survived the recession are now looking to grow and recruit more staff, not only generating more revenue for the economy, but also helping reducing our disastrous unemployment figures. Raising National Insurance will deter them from doing that”
“Raising National Insurance is a short term solution to a long term situation. The government should be supporting small business at this challenging time.”