The Federation of Small Businesses (FSB) has joined forces with other business and employment organisations to call on small firms to sign a petition urging the Government to freeze National Insurance. Research by the FSB with the Centre for Economics and Business Research (CEBR) found that increasing employers’ National Insurance by just one per cent will cost 57,000 jobs at a time of record unemployment figures.

“The latest research claims that these changes will not provide any substantial help to plug the Government’s gap in public finances,” said Frances Rentoul of business improvement specialists Aspire Management.

“Already the British Chambers of Commerce, Institute of Directors, British Retail Consortium, Confederation of British Industry, The Chartered Institute of Personnel and Development, Forum of Private Business and the Recruitment and Employment Confederation have started lobbying for a freeze.

“Many businesses are already having a hard time and anything that can help relieve the pressure has to be considered.

“If we are to encourage the UK’s 4.8 million small firms to take on more staff and reverse the rising unemployment figures there needs to be less stick and more carrot.” The FSB has organised an online petition at www.no-nics-rise.co.uk to try and get the Government to reverse the planned one per cent rise in National Insurance and put a halt on any future rises in the foreseeable future.

Raising taxes on small businesses must be a last resort if they are to do their job of helping to put the country on a steady road to recovery.

“This petition will tell Government that real action needs to be taken to really help tackle unemployment,” said John Wright, National Chairman, Federation of Small Businesses.

“The rise in National Insurance is a tax on jobs and will cost the country in thousands of jobs, as well as prevent small firms from taking on more members of staff at this crucial time in the country’s economic recovery.”