Business coalition: “Say no to employer National Insurance Contributions increase”

The UK’s leading business groups have formed a unique coalition promoting an internet petition that calls for the 1% employer National Insurance Contributions increase - planned for April 2011 - to be scrapped.
The petition, found in full at the dedicated website www.no-nics-rise.co.uk, says:

“We, the undersigned, call upon the Government to reverse the 1 percentage-point employer National Insurance Contributions (NICs) increase planned for April 2011.

“Businesses across the country know that it is imperative for the Government to begin the difficult job of repairing the public finances. But this NICs increase is a 'tax on jobs' - and will discourage companies of all sizes from taking on new staff at a critical point in our economic recovery.

“We urge the Government to work with business groups to find alternative ways to close the UK's budget deficit - beginning with a credible plan to reduce inefficiency in public sector spending. Any Government has to realise that additional taxes on businesses, especially small-and medium-sized companies, must be a last resort, not an easy way forward.

“The respected and independent Institute for Fiscal Studies has commented that 'employer [NI] contributions bear no relation to benefits provided under the NI scheme. These contributions are in effect simply a payroll tax'. From our perspective, further rises in NI mean fewer jobs, more people signing on, and a slower recovery for UK plc.

"The case is clear. No NICs increase - no tax on jobs.”

The petition was signed by the leaders of the British Chambers of Commerce (BCC), British Retail Consortium (BRC), Confederation of British Industry (CBI), Chartered Institute of Personnel and Development (CIPD), Forum of Private Business (FPB), Federation of Small Businesses (FSB), Institute of Directors (IOD), and the Recruitment Employment Confederation (REC).

Ends

Media Contacts:

British Chambers of Commerce - 020 7654 5813
British Retail Consortium - 020 7854 8924
Confederation of British Industry - 020 7395 8239
Chartered Institute of Personnel and Development - 020 8612 6400
Federation of Small Businesses - 020 7592 8128
Forum of Private Business - 01565 626019
Institute of Directors - 020 7451 3278
Recruitment Employment Confederation - 01753 827282

Notes to Editors:

1. Evidence from all of the eight business organisations explaining why the employer NICs hike should be scrapped can be found at the petition website – www.no-nics-rise.co.uk.

2. The final petition numbers will be presented ahead of the Chancellor’s Budget, which is expected to be in late March.

The British Chambers of Commerce (BCC) is the National Voice of Local Business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people