Business lobby groups demand cuts to National Insurance bill

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Business lobby groups demand cuts to National Insurance bill ahead of mini-Budget

By Helen Cahill For The Mail On Sunday

Published: | Updated:

Three major business lobby groups have demanded cuts to National Insurance bills in the mini-Budget next month.

They have told the Treasury that reducing employment taxes would save jobs as firms battle the worst recession for 300 years.

The Federation of Small Businesses, the Institute of Directors and the British Chambers of Commerce want changes in the level of employers’ National Insurance contributions.

Three major business lobby groups have demanded cuts to National Insurance bills in Rishi Sunak’s mini Budget next month

The FSB and the IoD have suggested raising the employment allowance, which currently allows employers to cut their annual National Insurance payment by up to £4,000.

The IoD has also said the Government should incentivise companies to invest in digital networks. 

It has suggested restructuring Government-backed loans so firms do not have to start repaying them until they return to profit. This could be financed by a slight rise in corporation tax.

Jon Geldart, director general of the Institute of Directors, said: ‘While the Government may want to hold off pulling some economic levers until later in the year, directors have to make hiring and investment plans in advance. The Treasury should act now to ease the cost of employment and help firms keep people on board.’

Mike Cherry, FSB’s national chairman, said: ‘Protecting jobs has to be a top priority.’

The Treasury declined to comment.

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