There could be an increase of jobs in London, the South East and east of England if the National Insurance Contributions holiday (NIC) is extended.
That’s the suggestion from the Federation of Small Businesses (FSB), reported by hrmagazine.co.uk, which believes that if all micro-firms become eligible for the scheme, 45,000 jobs could be created and £1.3 billion added to the economy.
However, if an extension was granted only to firms currently eligible, only 27,000 jobs would be created along with £700 million to the economy.
If the government ignores micro-firms, it could mean a vast drop in job creation and as the FSB estimates the scheme could be implemented UK-wide for around £500 million less than the existing budget, it could be a viable option. This is down to the wider economic impact of people getting jobs, paying income tax and having disposable income.
The national chairman of the FSB, John Walker, explained – cited by egovmonitor.com: “The NIC holiday is the Government’s flagship policy to boost employment, but it hasn’t anywhere reached the levels that were predicted.
“Extending the scheme will involve a financial outlay by government, but having more people in work will increase tax revenues in the long run as more people are paying tax than receiving help from the state through Jobseeker’s Allowance,” he added.