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Wednesday, 8 June 2011

Small firms 'would take on more staff' if NICs were reduced

Small firms would be far more willing to take on new employees if the government reduced National Insurance Contributions (NICs), a new survey has found.

Research carried out by the Federation of Small Businesses (FSB), showed that many small businesses are being "stifled" by issues such as late payments from other firms and a lack of finance from the banks.

According to a third of the 1,700 respondents to the FSB poll, reducing NICs for the first six months of employment would encourage them to take on more staff, while 11 per cent said that extending the NICs holiday scheme would also be an incentive.

John Walker, national chairman of the FSB, commented: "It is not only imperative that the government creates an environment for job creation, but that the banks lend to small firms and businesses are paid on time, to give small firms the confidence they need to grow their business and employ."

It comes after Mark Serwotka, general secretary of the Public and Commercial Services Union, said that the government needs to encourage UK businesses to increase pay, benefits and pensions in a bid to stimulate the economy.

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Posted by John Oak and Wayne BlyADNFCR-1617-ID-800572061-ADNFCR

Source: The Sales Director News

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