Category: Employment Law, Taxation and Legislation for Contractors

Spending cuts and tax rises are a "necessary pain" for businesses, it has been said.

However, they must be off-set by measures to help business leaders who want to grow their companies and employ more people, said a spokesperson for the Federation of Small Businesses (FSB).

"Over 90 per cent of small businesses surveyed recently said that it is important that the government cut the deficit," she pointed out.

They will have to pass the effects on to consumers though, the FSB spokesperson continued, meaning shoppers are set to have to pay more for goods and services, especially from smaller firms which cannot absorb costs as easily.

Chancellor George Osborne revealed in his emergency Budget this week several measures aimed at reducing the deficit and aiding small businesses.

He announced a new tax scheme which would give firms an exemption from up to £5,000 of employer national insurance payments for their first ten staff members hired.

Posted by Daniel Frost