FSB calls for government to rule out national insurance rise for self-employed

The Federation of Small Businesses (FSB) has urged the new government to rule out a national insurance rise for the self-employed.

The business group has suggested that self-employed ‘strivers’ were concerned during the General Election that a ‘tax grab’ could be sprung on them in the form of higher national insurance contributions (NICs).

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To help support the UK’s strivers, the FSB has called for the government to bring the Maternity Allowance closer in line with Statutory Maternity Pay, and explore the ‘feasibility of Statutory Paternity Pay’ for all eligible self-employed parents.

Commenting on the issue, Mike Cherry, National Chairman of the FSB, said: ‘The self-employed community is an increasingly critical driver of economic growth in the UK. As the self-employed battle spiralling inflation and a new wave of political uncertainty, the last thing they need is for the government to revisit failed plans for a national insurance hike.’

Following the announcement of an increase in NICs for the self-employed at the 2017 Spring Budget, the FSB launched a ‘stop the 2%’ campaign.

It has also previously compiled a list of problems facing the self-employed. Some of these issues include a lack of sick and holiday pay, late payment from large businesses and a high tax administration cost.

TUC warns of ‘two-tier’ workforce

15 Dec 2014

The Trades Union Congress (TUC) has released a report showing that workers on temporary and zero-hours contracts are earning substantially less than permanent staff.

General Secretary of the TUC, Frances O’Grady, said: ‘The growth of zero-hours contracts, along with other forms of precarious employment, is one of the main reasons why working people have seen their living standards worsen significantly in recent years.

‘It is shocking that so many workers employed on these kind of contracts are on poverty pay and miss out on things that most of us take for granted like sick pay’.

The findings in The Decent Jobs Deficit report show that workers on zero-hours contracts earn on average £300 less per week than permanent staff, and are five times more likely miss out on statutory sick pay as a result.

O’Grady added: ‘While it is good to see employment rising, if the UK doesn’t create more well-paid jobs with regular hours we will continue to have a two-tier workforce where many people are stuck in working poverty’.