FSB demands genuine budget for business

In a budget submission sent to the Chancellor, the FSB has identified tax inequalities, rising business costs and liability insurance premiums as the three key issues facing small firms.

Calling on the Chancellor to deliver a genuine budget for business this April. Wilfred Mitchell, Northern Ireland Policy Chairman said: “The submission argues that the odds are stacking up against small firms with a 7.2% increase in business failures in 2002 made worse over the last few months by rocketing insurance premiums and the uncertain international environment.

“Amongst the challenges that businesses will face are a 10% increase employees' National Insurance Contributions (NICs) affecting 28 million workers, an increase in employers’ NICs costing an extra £4 billon per year, the announcement of a new rate for the Minimum Wage, enhanced rights to maternity leave and pay, new rights to paternity and adoption leave, and new rights for parents to request flexible working arrangements."

Mr Mitchell said the FSB believed that small firms must be given a sporting chance against these rising odds and called for three key policy pillars in its budget submission.

These are:

· A £10,000 tax allowance for the self employed to ensure that tax breaks benefit the entire small business sector not just one section of it

· A call to scrap the forthcoming increases in National Insurance Contributions and a guarantee that in future, contributions will provide benefits for contributors and not be used a general method of taxation

· A call for revenue generated by Insurance Premiums Tax (IPT) to be used to avert the continuing crisis in the liability insurance market.

John Hurson, FSB NI Financial Affairs Spokesperson added: "More businesses went to the wall last year that at any time since the last recession in the early 1990s. The FSB's three policy pillars will reform the current taxation regime that currently penalises the smallest businesses, reduce business costs and provide immediate assistance to firms that can't secure liability insurance at any cost."

(MB)