Feeds

Small firms say UK taxes are strangling growth

But will take on more staff anyway

The essential guide to IT transformation

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. ®

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.