JOB creation must be encouraged by a wider “holiday” from national insurance contributions, the Federation of Small Businesses (FSB) said yesterday.
The coalition government has pledged a “national insurance holiday” for start up businesses that take on up to five staff.
But the tax break should be extended to existing firms with up to four members of staff that take on up to three more, the FSB said.
Almost half – 44 per cent – of small firms would take on additional staff if the government cut national insurance, an FSB survey revealed.
Amid rising unemployment, the government should consider that small companies are more likely than big firms to take on people that have been unemployed in the past 12 months, it said.
“The government is looking to the private sector to lead the recovery, but without the right measures in place, small firms are left without the tools they need for the job at hand,” said the FSB’s John Walker.