Firms told: say no to NI rise

Posted on 1 Mar 2010 by The Manufacturer

A range of business organisations including the Confederation of British Industry, the Federation of Small Businesses and the British Chambers of Commerce is urging small firms to sign a petition urging the Government to freeze National Insurance.

The organisations want a planned increase of one per cent, scheduled to be implemented in April 2011, to be reversed.

The FSB claims research it has done with the Centre for Economics and Business Research (CEBR) found that increasing employers’ National Insurance by one per cent will cost 57,000 jobs while not providing any significant revenues for the Treasury, especially given an estimated cost of £900m in additional social security payments.

“This petition – calling for no rise in National Insurance Contributions – will tell Government that real action needs to be taken to really help tackle unemployment,” said John Wright, national chairman of the Federation of Small Businesses. “The rise in National Insurance is a tax on jobs and will cost the country in thousands of jobs, as well as prevent small firms from taking on more members of staff at this crucial time in the country’s economic recovery.

“The FSB has been calling on the Government to take steps to make it easier for the country’s 4.8 million small firms to employ staff. The FSB knows that small firms want to recruit over the coming year, but are put off by taxes. The Government can give the economy a real helping hand by freezing National Insurance and helping to encourage small firms to grow and take on additional employees.”

Eight trade organistions have joined together to present the petition. They are:

Confederation of British Industry,
Federation of Small Businesses
British Chambers of Commerce
Forum of Private Business
Chartered Institute of Personnel and Development
British Retail Consortium
Institute of Directors
Recruitment and Employment Confederation

The British Chambers of Commerce says businesses face a bill of £25.6bn to comply with new regulation due to be brought in between now and 2014. Of that figure, over £14bn is the National Insurance increase

To sign the petition, see