‘National Insurance not the biggest election issue’ claim experts
With election leaders continually disputing the benefits and
disadvantages of a rise in National Insurance, research suggests
that the debate is not the most important issue for small
businesses.
In March's Budget, Gordon Brown's government pledged a 1% rise
in National Insurance (NI) to help fill the chasm of debt currently
swallowing Britain's economy. The idea has been fiercely contested
from David Cameron's Conservatives, with over 1,000 business
leaders throwing their weight behind plans to abandon the rise, due
to fears of a double dip recession.
But according to the British Chambers of Commerce (BCC) and
accountancy firm RSM Tenon, political campaigns should be focusing
on more important issues that will guarantee a "stable landscape"
for economic growth.
"There are simple clear initiatives the political parties need
to focus on to win over business owners," claimed Andrew Hubbard,
Tax Policy Director at RSM. "A stable and simple tax policy
containing real measures to reduce the deficit will ensure a low
interest rate and increased lending for businesses to thrive."
According to the BCC, the single biggest issue for today's
entrepreneurs is a lack of credit and increased lending would
create a market in which business can thrive once more.
"The NI rate in the UK is lower than that of neighbouring
France, Germany and Italy. In fact, even with the 1% increase it
will still have a comparatively low rate to its European
counterparts," added Mr Hubbard.
"NI has acted as smokescreen blurring the other issues
surrounding tax policy for businesses."
With the final televised debate set to tackle Britain's economy
and measures for the future, political leaders keen to grab the
attention of struggling businesses would do best to address the
real problems facing growth and leave protracted arguments over
"jobs tax" at the door