Scrap NI rises, demand businesses

16/02/2010

British Chambers of Commerce calls for scrapping of increase in NI contributions

The Monthly Business Survey found that 41 per cent of the respondents think that the next government should concentrate on reducing the budget deficit as a priority. Some 22 per cent disagree and instead feel that removing the red tape burden on businesses should be the main priority of the incoming government.

Some 13 per cent of those questioned in the British Chambers of Commerce survey said that reducing the tax burden on UK businesses was their main concern.

When asked more about taxation, only 6 per cent said they thought that increasing National Insurance Contributions would be the best way to make the UK more competitive. Meanwhile over a third said they thought a rise in VAT would be the best approach.

BCC director David Frost said, “the message from business is clear. After an election, we have to get a serious grip on the country's public finances and escalating debt.” He continued, “raising a damaging tax on business, like NICs, will be counter-productive. It will mean fewer jobs and less tax revenue in the long term.”