Firms in Essex calling for business insurance holiday

Firms in Essex have begun to call upon the Coalition government to extend a business insurance holiday scheme for National Insurance Contributions to apply to the county.

Local MPs are being urged by the Federation of Small Businesses to help stem the tide of rising unemployment by pressing their case.  Additional benefits to such a National Insurance holiday would be access to more working capital for business to spend on necessities such as business liability insurance.

Chairman of the Essex FSB, Iain Wicks, stated that his organisation has been welcoming to the government’s National Insurance holiday scheme that would apply to start-ups that take on five staff members.  However what he failed to understand is why new firms located in Essex were not eligible to benefit from the scheme.  As such a holiday could result in as much as £10,000 in savings – which could be spent on other necessities such as professional indemnity insurance – Mr Wicks stated he would like to see the government pressed by Essex MPs to alter its stance.

Mr Wicks also stated that the Local Enterprise Partnership for East Sussex, Kent, and Greater Essex should be hard at work in lobbying for an extension for the NIC holiday across the entire area of the LEP.

FSB recently released research findings that indicated the number of businesses taking on new staff declined to 8.7 per cent in the fourth quarter of 2010, down from 12.2 per cent in the third quarter. More worrisome was the expectation of 12.4 per cent of businesses to let staff go in the first quarter of 2011 – a figure that has increased from its 10.4 per cent rate the previous quarter.

The FSB chairman stated that the NICs holiday must be extended to existing businesses in order to enable them to hire more staff in an effort to reduce the rising unemployment trends in the country.

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