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Latest NewsEconomics, government & businessRecruitment & retention

Businesses expect to recruit following Government’s NI scheme

by John Eccleston 22 May 2013
by John Eccleston 22 May 2013

One in five small- to medium-sized enterprises (SMEs) has been encouraged to expand following the Government’s introduction of the employment allowance, which offers £2,000 a year towards businesses’ national insurance (NI) contributions.

The employment allowance was announced in the 2013 Budget and was introduced with the intention of encouraging businesses – particularly smaller ones – to bring in more staff.

A survey of SMEs published today by insurance provider Direct Line for Business found 20% of respondents were more likely to expand as a result of the move.

In addition, a further 33% of respondents said they were looking to recruit because of the reduced cost of employment.

Jazz Gakhal, head of Direct Line for Business, said: “It is encouraging to see that so many UK businesses are looking to expand. The Government’s decision to reduce the financial burden for small companies is a welcome boost for owners and managers across the country.

“Given that SMEs account for over 99% of all private-sector businesses in the UK, the health of this sector is vitally important.”

For more on recruitment and the labour market, sign up to receive Personnel Today’s Recruitment and Resourcing e-newsletter.

XpertHR has further information on national insurance.

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John Eccleston

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