Small Businesses Oppose Rise in NI Contributions

More than half of Britain's small businesses (56 per cent) are against the Government's plans to improve public services by raising National Insurance contributions, according to the findings of a survey by Taylor Nelson Sofres (TNS). Businesses with between 10 and 49 employees were the least supportive of an increase.

Of those small businesses that did not believe the Government's plans were the best solution to the public service crisis, more than half (51 per cent) felt better management practices were needed rather than increased funding. Respondents from the larger companies interviewed (25-49 employees) were particularly supportive of this approach. Almost one quarter of small businesses (23 per cent) instead favoured raising taxes for high earners.

As to who should bear the cost of increased contributions, the majority of small businesses questioned (55 per cent) believed that both the employer and the employee should meet any increase. Only one in 10 (10 per cent) felt that employers alone should increase their contributions, while more than a quarter (27 per cent) thought that employees should meet the cost.

Andy Glazier, Research Director, Taylor Nelson Sofres Finance said: 'Raising National Insurance levels is clearly not a popular approach to improving public services among small businesses. Clearly small businesses believe that the problems arise from the quality of the resources at the disposal of state services, not just the quantity of funds available. The Government needs to consider the views of small businesses and involve them in the decision-making process before implementing policies that impact on both employer and employee.'

The findings are based on 996 interviews conducted with companies with between one and 49 employees and a £1 million or less annual turnover in the UK. The research was conducted between 26th June and 15th July 2002.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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