FSB calls for tax 'helping hand' for small businesses

The UK's tax regime has prevented a large of proportion of small businesses in the UK from taking on more staff and growing their organisations, according to new research.

Over half of firms questioned by the Federation of Small Businesses (FSB) said taxes have had a negative impact on their chances of economic recovery. Businesses in the south-east of the country feel particularly strongly, closely followed by the north-west and London.

Concerned that the temporary boost to employment figures provided by the Christmas period is reaching an end, the FSB is stepping up calls for the government to freeze National Insurance Contributions and provide a National Insurance rebate for small businesses with fewer than 50 staff that take on more employees in the coming year.

"What the UK economy needs is real action to get more people into work, especially under-25s, who make up a large proportion of those currently unemployed," commented John Wright, the body's national chairman.

A cut in National Insurance Contributions would encourage small businesses to take on more staff and grow their companies, he continued: "Small firms can help to strengthen economic recovery if they are given a chance to grow and flourish, but they will need a helping hand."