Suspending VAT increases and freezing NICS (National Insurance Contributors) may be the best way for the Government to help small firms advance out from under the recession according to the Federation of Small Business’ (FSB) 2010 Manifesto.
The launch of the Manifesto is set to correlate with the general election and includes many recommendations which the FSB believes will help small firms get better access to finance, set up new business, and create more jobs.
One of the vital proposals found within the Manifesto is a major overhaul of the current tax regime for payrolls that includes offering a tax rebate for firms that hire new staff members over the coming two years and a freeze on NICS.
A spokesperson for the FSB said that two areas that small firms need to concentrate on are access to finance and job creation opportunities. The spokesperson continued to say that small businesses hold the answer to ending the rising numbers of unemployment but NICS is a detriment that stops small firms from hiring more employers.
Additionally, the FSB also asked that finance be opened up to small firms from other atypical funding sources such as banks run by local councils. The need for such an institution is high according to the FSB since too many SMEs are still being refused proper funding and the banking sector needs more competition.
In response to the proposals, an official from the BIS (Department for Business, Innovation, and Skills) stated that the Government is aware of the importance of SMEs in economic recovery and that they will continue to support the small business sector.