Many PAYE umbrella contractors are likely to endorse the Federation of Small Businesses’ call for the government to prioritise economic stability in the forthcoming budget.
The UK’s five million-strong small businesses, which include freelancers working for umbrella companies and limited companies, are in an excellent position to help the economy expand, according to the FSB. Many will pick up the casualties of public sector cuts this year but can only do so against a background of economic stability and consistency.
During the last quarter of 2010, employment plans and confidence both declined amongst small businesses. Amongst the measures the FSB would like to see the government implementing to boost SMEs is an extension of the National Insurance holiday to one year. This would apply to small firms employing fewer than four staff if they were to take on an additional three new employees. Such a move could generate a huge surge in job opportunities.
In its submission to the Chancellor, the FSB also called on the government to reverse the rise in fuel duty scheduled for April 1st 2011. To control inflation, a fuel duty stabiliser should also be introduced. Additionally, finance should be provided to micro-businesses to fund apprenticeship places, tackling youth unemployment in the process. In similar vein, the FSB also wishes the government to extend the Graduate Internship Scheme beyond its present deadline of March 2011.
Finally, a moratorium on one year should be declared on all new employment legislation after the budget to provide a stable regulatory environment for firms to recruit new personnel.