A petition has been put together by the Federation of Small Businesses (FSB) alongside other recruiters and businesses to request the government to freeze national insurance. The FSB has conducted research which proves that is employers’ national insurance increases by the proposed one per cent, it will result in 57,000 job losses. The increase is also unlikely to reduce the public spending debt. The petition, which can be found at www.no-nics-rise.co.uk, is seeking to reverse the planned rise in contributions. The FSB believe that small businesses taxes should only ever be used as a last resort as small businesses play a vital role in the UK economy.

John Wright, National Chairman, Federation of Small Businesses, said: “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. 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.”

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