Small businesses urged to sign petition against NI rise

The Federation of Small Businesses (FSB) is calling on firms to sign a petition against a rise in national insurance.

The FSB, along with other business and employment organisations, is urging businesses to help it convince the government not to put into place its planned one per cent rise in national insurance contributions.

Increasing national insurance for employees by one per cent will cost 57,000 jobs, according to research by the Centre for Economics and Business Research in conjunction with the FSB.

Any increase must be a last resort, claims the FSB, if small businesses are to help rebuild the country's economy.

John Wright, national chairman of the FSB, said the planned rise "will cost the country thousands of jobs" and "prevent small firms from taking on more members of staff at this crucial time in the country's economic recovery".

The national insurance increase is due to come into place in April 2011.

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