14 Dec 2009
The National Insurance (NI) hike announced in Chancellor Alistair Darling's Pre-Budget Report (PBR) has been slammed by channel onlookers and business bodies.
The PBR's business-centric measures included a 12-month extension to the SME-focused Enterprise Finance Guarantee Scheme. Darling said: "As recovery gets underway, we need to ensure that SMEs get the credit they need."
An extra 0.5 per cent spike in NI contributions will be introduced on top of a planned 0.5 per cent increase in April 2011. The British Chambers of Commerce claimed the move "undermined" other business measures, while the CBI labelled it "a serious mistake".
Further reading
John Massey, managing director of VAR Actimax, said: "This adds to everybody's costs with no benefits."
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