Chamber Calls On Government To Scrap National Insurance Increase

ELY Chamber of Commerce has pledged its support for a petition calling for the government to scrap plans to increase employer National Insurance contributions by one per cent from April 2011. The internet petition has been instigated by a unique coalitio

ELY Chamber of Commerce has pledged its support for a petition calling for the government to scrap plans to increase employer National Insurance contributions by one per cent from April 2011.

The internet petition has been instigated by a unique coalition of the UK's leading business groups including the British Chambers of Commerce, the FSB, the CBI and the IoD, amongst others, and urges the government to work with business groups to find alternative ways to close the UK's budget deficit.

John Bridge OBE, Chief Executive of Ely Chamber of Commerce, said:

"The fact that so many well-established and highly-regarded business groups have joined forces in this way shows what a significant issue the planned rise would be for businesses. In a recent survey of Chamber members across the UK, over 22 per cent of small businesses said that they would have to limit staffing levels in order to absorb the cost of the planned national insurance rise. This would do little to help get the labour market moving again.


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"Debt levels are undoubtedly a key issue, and businesses across the country know that it is imperative to begin the difficult job of repairing the public finances. But what the Government desperately needs to recognise is that now is the time to offer incentives to businesses, not inflict more costs. In particular, the cost of employing people must be reduced if future governments are serious about giving businesses the freedom to create jobs and drive our economic recovery."

The same survey, conducted by the British Chambers of Commerce (BCC), also revealed that just under 25 per cent of small businesses believe that reducing regulatory burden should be made the number one priority of an incoming government. Recent analysis by the British Chambers of Commerce, using the Government's own impact assessments, found that employers face a staggering bill of �25.6bn just to comply with new regulations between 2010 and 2014 - of which over �14bn comes from the national insurance increase.

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John Bridge continued:

"By putting their names to this petition, the message from small businesses owners is clear - that an increase in employer national insurance contributions would inhibit their ability to generate economic growth. Official figures may say we're out of the recession but for many the reality is very different.

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