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FSB says small business payroll costs should be reduced

The Federation of Small Businesses (FSB) has called for payroll costs to be reduced for small businesses in a bid to boost the economy.

A spokesman for the organisation urged the government to lend its support to what it refers to as “the backbone of the economy” by reducing costs to encourage them to take on staff.

She added: “It is vital that small businesses are encouraged to take on staff. They have told us that if the government reduced payroll costs they would take on staff.”

The spokeswoman suggested that the government should extend the national insurance contributions holiday to existing firms to boost growth.

REC JobsOutlook for this month showed that confidence among employers had steadied, with 64 per cent expecting to take on more permanent staff in the next three months. Just three per cent said they expected to make cut backs to staffing levels in the coming year.