Small businesses 'suffering under UK tax regime'

Small businesses will be able to help the UK economy by employing more staff - but they need more support from the government to be able to do this.

This is the view of the Federation of Small Businesses (FSB), which backed the British Chambers of Commerce (BCC) by calling on policymakers to cut proposed increases in National Insurance contributions (NICs).

More than half of small firms surveyed by the FSB in January explained that UK taxes have left them unable to take on more workers.

Small businesses in the south-east and north-west of England were particularly critical of the current tax regime, with 64 per cent and 60 per cent respectively saying it has a negative impact on them.

National chairman of the FSB John Wright said: "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."

Earlier this week, a BCC poll showed that businesses favour a rise in VAT rather than the proposed NIC hike.

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