In Thursday’s post, we commented on how many small business owners felt that the Chancellor’s Pre-Budget Report ‘gave with one hand and took back with the other. ‘As the week progressed, the backlash against the report has seemed to gather momentum, especially in regards to the planned increase in National Insurance.
Nathan Betts, founder of ‘Plumbers 4 U’ comments; “I think increasing National Insurance is very short-sighted on the government’s part; on the one hand they acknowledged that the SME sector is a crucial part of reducing unemployment and yet on the other, they are increasing the amount of money it costs to employ extra members of staff. It is that sort of illogical thinking that got us into the position we are currently in.”
Gavin Obital, founder of business networking group ‘Enterprise UK’, feels that it is not only the policy that is flawed, but also the time the government has planned to implement it. He comments; “The government has chosen the worst possible time to implement increased national insurance; hopefully by 2011 the country will be just emerging from the recession and small businesses owners will be looking into expanding their companies. To do so, most will want to employ extra team members and yet as a consequence of increased national insurance, they will be dissuaded from doing so.”