Cut National Insurance for small businesses

Alan Duncan has called on the Government to help small companies and boost jobs by cutting the rate of employers’ National Insurance by 1p for at least six months.

The cut forms part of a fully-funded package that would also see the small companies’ rate of corporation tax reduced to 20p.

Alan, the Shadow Secretary for Business, said, “Small businesses are facing very difficult financial pressures at this time and it’s essential that the Government looks at what it can do to help now.”

Under our proposal, businesses with less than 5 employees would have the rate of employers’ National Insurance that they pay cut by 1p for at least six months.

A small business with 4 employees and an annual wage bill of £150,000 would save more than £100 a month.

The cut would be paid for through our existing plan to abolish complex reliefs and allowances introduced by Gordon Brown, and use the money to cut the small companies rate of corporation tax to 20p.

Alan stressed our package would help thousands of SMEs as well as tackling unemployment by reducing the costs of employing people:

“Along with our suggestion to defer VAT payments for six months, this is part of a package of measures that the Government needs to look at urgently. For small businesses, this could be the difference between insolvency and survival.”

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