Businesses believe a National Insurance holiday should be
declared by George Osbourne as a way of reducing
Ian Cheshire, the chief executive of
Kingfisher, the parent company of B&Q and Screwfic and Jill
McDonald the chief executive of McDonalds in the UK have called on
the Chancellor to introduce the measure at next months Autumn
Recent figures revealed that the amount of
people unemployed has hit 2.57 million, including 991,000 18-24
year olds. This means that the jobless rate among young people is
21.3%, which is bad news for graduates and universities who are
trying to show the value of a degree.
A National Insurance holiday would allow
employers to be exempt from contributions for around the first 6
months of any new member of staff they hire. Employers are
currently obliged to pay 13.8% of an employer’s salary. Some
businesses have also suggested that this could just be for young
people as many graduates are struggling to find graduate jobs.
Mrs McDonald said: "It would tip the balance.
It would be great. If one of my restaurants was in the balance
about whether we need to recruit another person, something like an NI
holiday for the first three months or six months would make the
The belief that reduction in VAT from 20% back down to 17.5%
would do less to bolster confidence and would help businesses in
the short term but be bad for the economy. He added that Mr.
Osborne needed to give businesses an incentive to hire. "The danger
is you have potentially people sitting on cash on balance sheets
and not feeling confident enough to invest and create jobs.
Employment is the key issue."
What are these?
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