Cut employer costs to complement furlough extension, small firms urge

Added by Love Business East Midlands | 3 March 2021

UPDATED: 3 March 2021

Responding to the announcement that the Job Retention Scheme (JRS) will be extended and sole traders with a 2019/20 tax return will be included in the next rounds of Self-Employment Income Support Scheme (SEISS) grants Federation of Small Businesses (FSB) Development Manager said:

 

“This announcement will bring hope to millions of business owners – small employer and sole trader alike. It’s absolutely right that support measures evolve to reflect ongoing restrictions, and it’s good to see such evolution today. Giving firms the ability to furlough staff over a summer that we hope will bear the first green shoots of recovery will enable them to plan ahead.   

“We’ve worked hard with others to secure help for the newly self-employed, and it will be a great relief to hundreds of thousands of sole traders to see that help delivered today. We look forward to these measures being cemented in a truly pro-small business Budget tomorrow.

“That said, piling new wage costs on to the most precarious small employers on top of national insurance and pension contributions from July will put many under serious pressure, just at the moment when they should be starting to see some light at the end of the tunnel.  

“This much-needed furlough extension should be complemented by further measures to bring down employment costs, helping small firms to both retain and create jobs. The reintroduction of a job retention bonus and a reduction in employer national insurance contributions would hugely aid efforts to get our economy firing on all cylinders again, both before and after furlough ends.

“Company directors will be extremely disappointed to see that they appear to have been left out in the cold yet again. We hope the Government fixes this entirely solvable flaw in their approach to support tomorrow.”

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