The expected hike to employer’s national insurance which many expect will be announced in tomorrow’s budget will cripple small businesses. That’s the view of Simon Michaels, Director of HW Fisher Business Solutions, as he shares his thoughts on how this will impact small businesses and as a ripple effect, the ‘workers’ whom the government is trying so hard to protect.
Simon Michaels, Director of HW Fisher Business Solutions said “The Government’s definition of ‘working people’ appears to draw a distinction between small business owners and those they employee. In reality, the term should encompass all contributors to a business, including the founders who have invested their time and resources to create opportunities for others.
“Small businesses are the lifeblood of the economy, making up 99.2% of the total business population, and generating three-fifths of the UK’s private sector employment. Owners of these enterprises are simply ‘working people’ who have chosen to help others by building better, more successful businesses, creating jobs and economic value. Their contributions benefit the wider economy, often at great personal risk.
“The potential move from the government to hike employers’ national insurance will have an indirect consequence on ‘working people’ by any definition. With less money available for small businesses to invest, the opportunities for pay rises, staff benefits, and recruitment will inevitably decline.”
