The Federation of Small Businesses (FSB) is calling on the government to reduce the contributions to National Insurance that small firms have to make due to the post-Covid-19 financial strain many are under.

The lobby group for these companies is stating that its own research shows two-thirds of smaller firms have witnessed a rise in their operating costs during the past 12 months. In total, 43% of those that took part in the FSB survey stated that it was rising raw material costs that were leading to this, while 36% said it was employee wages. Increased charges for fuel and utilities were cited by 26% and 28% respectively.

Accountants in Goole or wherever a business happens to be based can sometimes help find ways of reducing costs, such as a tax relief that the company is entitled to claim.

The Chairman of the FSB, Mike Cherry, told Daily Business Group that these firms are coming out of the pandemic to a combination of increasing costs, debt repayments, shortages of people with the necessary skills and additional administrative demands. He then went on to add:

“The government should urgently move to mitigate cost pressures by reducing Employer NICs, which are serving as a jobs tax and yet another cost to think about in an environment where finding the right people is a nightmare.”

Cherry concluded by urging the government to relocate the drive to reform the business sector found in its manifesto, so that small businesses would have the chance to grow and spark a wider recovery.