|
Independent Retailers Denied Opportunity to Grow
Listed under: News
Published: Thursday, February 18, 2010
Despite more than 50% of small business owners saying they would like to expand their enterprises over the next year by employing new staff, a new survey has revealed that very few currently feel able to do so due to high taxes and continually fluctuating business costs.
The report, which came ahead of research published this month showing long-term unemployment has reached 2.6 million this year, suggests that rising taxes have prevented as many as three in every five business owners from recruiting more staff.
The Federation of Small Businesses (FSB), the business support group which carried out the report, is urging the Government to freeze National Insurance Contributions and provide a National Insurance rebate for enterprises with fewer than 50 employees that want to take on more staff over the next year.
The findings show that enterprises in the South East have been most affected by high taxes, with approximately two thirds of companies citing them as the biggest factors preventing them from expanding their businesses. Firms in the North West and London have also suffered, with 60% and 59% of respondents saying they were the greatest obstacle to their growth respectively.
Commenting on the report, John Wright, the national chairman of the FSB, says, “The January employment figures showed a welcome fall in the number of people out of work, but we fear the severity of the recession will begin to be evident when the latest statistics are released. 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.
He adds, “A cut in National Insurance Contributions would encourage small businesses to take on more staff and grow their businesses. 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.”
How have rising tax rates affected your business? Email your thoughts to .(JavaScript must be enabled to view this email address)
The report, which came ahead of research published this month showing long-term unemployment has reached 2.6 million this year, suggests that rising taxes have prevented as many as three in every five business owners from recruiting more staff.
The Federation of Small Businesses (FSB), the business support group which carried out the report, is urging the Government to freeze National Insurance Contributions and provide a National Insurance rebate for enterprises with fewer than 50 employees that want to take on more staff over the next year.
The findings show that enterprises in the South East have been most affected by high taxes, with approximately two thirds of companies citing them as the biggest factors preventing them from expanding their businesses. Firms in the North West and London have also suffered, with 60% and 59% of respondents saying they were the greatest obstacle to their growth respectively.
Commenting on the report, John Wright, the national chairman of the FSB, says, “The January employment figures showed a welcome fall in the number of people out of work, but we fear the severity of the recession will begin to be evident when the latest statistics are released. 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.
He adds, “A cut in National Insurance Contributions would encourage small businesses to take on more staff and grow their businesses. 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.”
How have rising tax rates affected your business? Email your thoughts to .(JavaScript must be enabled to view this email address)
