SMEs looking to expand over the next six months
A couple of weeks ago we wrote about how UK companies are continuing to invest into their workforce even though many of them are finding it is difficult to recruit the right employees for a position.
Regardless of this skills shortage that many employers seem to be experiencing, seven out of ten businesses will be hiring over the next six months. This is despite more than half of them expressing concerns about their business outlook on the back of weak economic growth figures.
In order to battle through these tough times, small and medium sized businesses are looking for more fiscal incentives to help stimulate the growth that they aim to deliver. According to a survey by the London Entrepreneurial Exchange (LEE), given the choice between a 12 month holiday in National Insurance contributions or a 12 month cut in VAT from 20 percent to 17.5 percent, 55 percent of owners surveyed said they would opt for a year’s holiday on NI while 45 percent say they would prefer the drop of 2.5 percent in VAT.
In addition, 60 percent of business owners do not believe, or remain unsure about the positive effects of the Euro-bail out for their business while 61 percent do not want a referendum on UK membership of the EU.
The CEO of the London Entrepreneurial Exchange, Shalini Khemka claimed that SMEs have the entrepreneurial spirit to see them through the clear difficulties that lie ahead and are keen to expand over the next six months.
He also added that this will require an urgent review of the level of national insurance contributions levied on young employees to help stimulate growth. Khemka says that a temporary reduction in National Insurance will be good for business, employment and as a result good for the economy and wider society.
Do you think this reduction in National Insurance will benefit the economy? Why or why not? Please let us know your thoughts in the comments below.
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