National Insurance Contributions stop SMEs hiring staff

Small businesses would hire new staff if the National Insurance Contributions (NICs) were reduced by the government new figures reveal from the (FSB) Federation of Small Businesses. There are over 2.4 million people unemployed so the FSB says it is crucial that incentives are provided by the government to aid small businesses to hire staff and help lower unemployment.

FSB Reading & West Berks’ chairwoman Nicky Goringe said, the FSB has long said small businesses would be able to take on employees if there was a reduction of the National Insurance Contributions, adding that incentives are needed for small businesses even though they need to employ.

The holiday for National Insurance Contributions needs to be extended by Government to existing small firms if they are to employ new staff to help the high unemployment. The FSB says payments that are from other firms are stifling small firms as well as the lack of banks willing to finance have forced some to close.