National insurance hike 'devastating' for business
By Richard Wright | 7th September 2021
Pushing up National Insurance contributions would be a severe blow to small businesses and sole traders, it's claimed.
Responding to reports that the Government is considering increases in National Insurance Contributions (NICs) to fund social care, Mike Cherry, Chair of the Federation of Small Businesses (FSB), said: "Breaking a manifesto promise by increasing NICs just at the moment when firms are struggling to get back on their feet would be devastating for small businesses and the local communities they serve."
He added that National Insurance contributions acted as a 'jobs tax', making it harder for small firms to provide opportunities and invest to improve productivity.
Any increase would mean fewer jobs would be created by the UK's small business community.
He added: "This regressive levy is yet another outgoing for small businesses and sole traders to worry about against a backdrop of spiralling input prices, supply chain disruption, a deepening late payment crisis, rent arrears, rates bills returning, skills shortages and emergency loan repayments."
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