Feeds

Small firms say UK taxes are strangling growth

But will take on more staff anyway

Securing Web Applications Made Simple and Scalable

The Federation of Small Business has found that its members would happily take on more staff if they weren't groaning under the financial burden of keeping the British government ticking over.

The organisation also predicted a rise in unemployment, giving its members even more reason to rail against the taxes they will have to pay to support the people they can't give jobs to.

The organisation's latest survey found that more than half its members believed UK taxes were preventing them taking on more staff.

It was businesses in the South East that were most irked by the prospect of subsidising the state apparatus, with 64 per cent of them saying taxes had a negative impact. The figure in the North West was 60 per cent, and 59 per cent in London. The figure across the country was 58 per cent.

While a survey late last year suggested that 19 per cent of small firms would take on more staff, the organisation expects a rise in unemployment in the short term.

It called for a cut in national insurance or freeze in national insurance rates, with a rebate for small businesses to stimulate employment.

"A cut in National Insurance Contributions would encourage small businesses to take on more staff and grow their business," national chairman John Wright said.

"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."

It was not clear if the FSB reckoned an NI cut would lead to its members taking on even more staff than they already planned. Its late 2009 survey showed 27 per cent of its members expected to take on workers this year, with 23 per cent in the North East planning to expand their workforce.

The lowest proportion of small firms expecting to hire more workers was Yorkshire and Humberside, where just 16 per cent expect to lengthen the payroll. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.