The government ‘s National Insurance holiday for start-up businesses is a good idea, but it should be extended to existing small companies.
That’s the view of the Federation of Small Businesses (FSB), which believes that this measure would help create jobs and stem unemployment.
In a new report, entitled 'National Insurance holiday for new jobs in small businesses', the FSB claims that established companies, which employ up to four members of staff, should be included in the exemption scheme.
Recent research from the FSB indicates that 44% of small firms would take on more staff if the government cut National Insurance – and this could prove a vital catalyst for economic growth.
The number of people out of work rose to 2.5 million in the three months to November, and many believe that small firms are more likely to take on unemployed people than larger ones.
John Walker, chairman of the FSB, said:
“The government is looking to the private sector to lead the recovery, but without the right measures in place, small firms are left without the tools they need for the job at hand.”