Taxes may limit new jobs at SMEs

New taxes may prevent over half of all small businesses from hiring more employees according to research from a new ICM Research survey and the Federation of Small Businesses.

The survey, which was conducted in January, showed small businesses have the want to grow in numbers but will need the correct conditions in order to get in the position where hiring new employees can be a consideration.

The survey also revealed that 64% of southeast businesses reported that taxes have negatively impacted their growth which is a view that was reiterated in the North with 60% agreeing to the impact of taxes and 59% agreeing in the London area.  The overall average for the UK is around 58%.

The FSB is taking action by asking the government to stall national insurance contributions due to concern that the surge in employment that occurred during the holidays may soon end.

National chairman of the FSB, John Wright, stated that the employment figures from January saw many people able to return to work but due to the damage from the recession the figures after this period are expected to be much lower.

The FSB is urging the government to consider offering a rebate on national insurance for small businesses that have less than 50 staff members if they agree to take on new employees over the course of this year and next.

Wright continued to say that the UK economy needs some type of boost that will open up new jobs for people especially those who are under the age of 25 in order to start to recover from the fallout. The UK economy has seen a major increase in the use of job search engines, particularly those under the age of 25 that are currently out of employment.