Small businesses are calling on the government to reduce tax burdens as part of its election manifesto, according to a new survey.
In the survey, conducted by the Tenon Forum, 86 per cent of small businesses agree that the best way for the government to ease pressure would be to reduce NI contributions.
In addition, over a third claim that a reduction in this area is needed more than any other tax measure.
Last year saw employer’s contributions increase from 11.8 per cent to 12.8 per cent - an actual increase of 1p in the pound.
Jolyon Stonehouse, chairman of the Forum, said: “Small business’ focus on NI is understandable considering the hardships that rises in NI place on growing businesses.
"Smaller firms are more exposed to fluctuations in cash flow, so a growing monthly NI bill can make it difficult to hold on to staff during leaner trading periods. The clear message from our survey is that the current NI rate is acting as a brake on enterprise.”
A reduction in corporation tax is second on the wish list for small businesses in manufacturing, construction, transport and communication.
Unsurprisingly, reducing the rate of VAT is more important to businesses within the retail, leisure and utilities sector, with 28 per cent stating this as their preferred tax priority.
Stonehouse said, “With speculation around a snap General Election in early 2005, the Tenon Forum urges all political parties to pay heed to businesses needs. SME’s provide work for 12.5 million people and generate an estimated £400 billion of GDP. Their views should not be ignored.
