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Small businesses need less stringent tax regime

Published on 16 Feb 2010 under category: legal

Small business growth is being stunted by the UK tax regime, according to new research.

The annual Voice of Small Business survey conducted by the Federation of Small Businesses (FSB) and ICM found that more than half of companies surveyed (58 per cent) had been unable to take on new staff because of UK taxes.

Firms in the south-east felt the burden more heavily, with 64 claiming that taxes have a negative impact. The north-west and London only felt marginally less strongly at 60 per cent and 59 per cent respectively.

The FSB called on the government to freeze national insurance contributions and provide a National Insurance rebate for small businesses with fewer than 50 staff that take on additional employees in the next two years.

John Wright, national chairman of the FSB, said: "The January employment figures showed a welcome fall in the number of people out of work but we fear the severity of the recession will begin to be evident when the latest figures are released.

"Small firms can help to strengthen economic recovery if they are given a chance to grow and flourish, but they will need a helping hand."

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