WA79

Chancellor urged to cut national insurance contributions

As the 2004 Pre-Budget Report looms closer, a leading think-tank has urged Chancellor Gordon Brown to reverse last year's 1% increase in employer's national insurance contributions (NICs).

According to a survey from the Tenon Forum, 86% of SMES believe that the increase in employer's NICs to 12.8% in 2003/04 should be revoked.

Forum Chairman Jolyon Stonehouse said, 'Smaller firms are more exposed to fluctuations in cash flow, so a growing monthly NI bill can make it difficult to hold on to staff during leaner trading periods'.

Business leaders in the manufacturing, transport and communications industries were also keen to see a decrease in the level of corporation tax.

The Pre-Budget Report will be held on 2 December, when the Chancellor will outline key measures under consideration for the spring Budget, and provide an update on the state of the economy and public finances.

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