Freelance contractors working through umbrella companies and limited companies are likely to support suggestions from the CBI, urging the Chancellor to make the determined pursuit of economic growth the top priority for his forthcoming Budget.
The employer’s group believes the government should focus on three key areas: dismantling barriers for high-growth firms, boosting domestic investment spending and enhancing export performance.
In its pre-Budget letter to Mr Osborne, the CBI also urged him to make changes to the tax system, arguing that the 50p income tax rate actively discourages the very entrepreneurship the government wishes to promote. Amongst a raft of other measures aimed at assisting medium to larger enterprises, the CBI also wishes the government to cut back on business red tape. This is discouraging many prospective smaller enterprises from even making a start.
CBI Director-General John Cridland said that the March Budget “must demonstrate a relentless focus on growth to get the UK working again.” An “all-action Budget” was urgently required to boost jobs, investment and exports, he added, with swift decisions on investment in the infrastructure playing a key part in the process.
The CBI’s advice follows recommendations made to the Chancellor by the Federation of Small Businesses last week, which called for policies ensuring economic stability. The FSB believes that only under economically stable conditions can smaller businesses develop the confidence to grow and hire more staff. Amongst the measures it advocated was an extension of a further year to the current National Insurance holiday, and providing finance for micro-businesses to take on apprentices.