SMEs call for more Government support

The FSB proposed lowering the costs of employer National Insurance contributions to help small businesses create jobs at a time when many firms are laying staff off.

The organisation polled 1,564 firms and found 25% of small firms reduced headcounts last quarter, while 29% expect to make redundancies over the next three months.

More than one in ten (12%) respondents expect at least a quarter of their staff to go.

Mike Cherry, chairman at the FSB, said:

“If we want them to invest, innovate and expand, we have to alleviate the strain of wider government-imposed overheads, including those stemming from an outdated business rates system which continues to stifle too many community businesses all over the country.”

Most businesses in England currently benefit from a 12-month business rates discount, and the Government could extend this in 2021/22 due to the pandemic.

A comprehensive review into potential reform of the controversial bricks-and-mortar tax is due to be published before Spring Budget 2021.

Cherry added:

“Now that support measures are continuing through to the spring, we should also avoid a scenario where businesses suddenly go from going from paying 0% to 100% of their business rates bills in April [2021].”

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