Business groups unite to oppose NICs increase

 

A host of business groups have joined forces to lobby against the proposed rise in national insurance contributions (NICs) planned for April 2011.

 

In a letter of petition, organisations including the Confederation of British Industry (CBI), Federation of Small Businesses (FSB) and British Chambers of Commerce (BCC), are calling on the Government to scrap the planned increase in NICs.

 

The heads of the Chartered Institute of Personnel and Development, Forum of Private Business, Institute of Directors, Recruitment Employment Confederation and British Retail Consortium have also pledged their support to the campaign.

 

Last year the Government announced plans to increase NICs by 1% in an effort to close the UK’s budget deficit. However, the business community has criticised the move, arguing that the rise amounts to a ‘tax on jobs’ and could undermine the nascent economic recovery.

 

The petition states: ‘We urge the Government to work with business groups to find alternative ways to close the UK's budget deficit - beginning with a credible plan to reduce inefficiency in public sector spending. Any Government has to realise that additional taxes on businesses, especially small-and medium-sized companies, must be a last resort, not an easy way forward.’

 

Commenting on the coalition, John Wright, FSB National Chairman, said: ‘This petition […] 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 petition can be viewed in full at www.no-nics-rise.co.uk. The final numbers will be presented ahead of the Chancellor’s Budget, which is expected to be delivered later this month.