ACR supports attempts to limit NICs rise

The economic recovery remains intact, if tentative. Anything that threatens that delicate balance needs avoiding. And we agree with our industry body, the REC, that the proposed one per cent rise in National Insurance Contributions constitutes a threat.

The rise is set to be introduced next April. All the signs are that this is going to be a long slow recovery so any changes in National Insurance that soon could have a dramatic knock on effect.

More outgoings for employers will mean less staff are hired – indeed, some jobs may be lost.

I’m not suggesting for one minute there is an easy answer. The Government has a tough job to do repairing the public finances.

But the rise in NIC is, in effect, a tax on jobs and, I believe, should be seen as a last resort not an easy fix.

The figures are stark. Someone who’s better than me with the calculator has worked out that a 1p increase in Contributions could result in the loss of 57,000 small business jobs; the retail sector would be stung to the equivalent of 31,000 part time jobs and, according to one survey, while 12 per cent of employers would recruit fewer staff because of the planned rise, eight per cent would actually cut jobs.

The Government – whichever party is in power by then – has 12 months to backtrack. That’s plenty of time to do the maths.

We’ve added our name to this petition http://www.no-nics-rise.co.uk/ You might like to.