Small firms would be able to employ more people and help stem the tide of unemployment if the National Insurance Contributions (NIC) holiday was extended to existing companies, it has been claimed.
The Federation of Small Businesses (FSB) has called on the government to do more to create an environment for job creation and alleviate the burden small and medium-sized enterprises (SMEs) are under.
Research from the organisation showed that nearly half (44 per cent) of small firms would be willing to boost staff numbers if the NIC holiday was extended to them.
John Walker, national chairman of the FSB, said that SMEs cannot rely solely on the consumer for growth and that those in power must do more to support small businesses in this hour of need.
"We know that small firms would take on more staff if National Insurance was cut, so to really help boost employment in small businesses, the government must give a helping hand to small firms," he added.
Figures from the Office for National Statistics showed that unemployment in the UK now stands at 7.9 per cent.
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