Tory proposals for a National Insurance tax holiday for new start-ups has been given a cautious thumbs up by business groups.
Shadow Chancellor George Osborne announced the proposals at the Conservative Party conference in Manchester yesterday. The tax break would apply to the first ten people recruited by new companies.
Osborne claimed it could create 60,000 new jobs if the proposals were put in place.
The Forum of Private Business (FPB) which is currently campaigning against a 0.5% NI increase due to come into force in 2011, welcomed the proposals.
“For prospective employers, as one of a raft of measures aimed at getting Britain back to work and boosting the country’s skills base, abolishing National Insurance (NI) for new start ups stands out [as a key] announcement,” said FPB chief executive Phil Orford.
“At present, employers’ NI contributions are set to rise by 0.5% from 2011, just as small businesses are likely to be in a position to recruit staff in earnest. We will examine the savings that will need to be made to pay for this initiative, but welcome it in principle as a genuine stimulus to employment, small business growth and sustained economic recovery.”
© Crimson Business Ltd. 2009