The Federation of Small Businesses (FSB) has warned that tax rises could threaten the UK’s ongoing recovery from the coronavirus (COVID-19) pandemic.
According to the FSB, small businesses are coming up against ‘unprecedented strain’, with the cost of doing business higher than ever. Small businesses are also being affected by disruption to supply chains and increasing costs, the business group said.
Following the end of the Coronavirus Job Retention Scheme (CJRS), it has called for the government to focus on helping employers create jobs. The FSB also urged the government to generate new schemes to help fill skills shortages.
‘It’s disappointing to see that more is not being done to tackle employment costs which are a huge drain on small businesses,’ said Mike Cherry, National Chair of the FSB.
‘Increasing the Employment Allowance would help protect the smallest employers who are being hit hard by the end of furlough and the NICs rise. The government should also expand Small Business Rates Relief to premises with a rateable value of £25,000, removing an additional 200,000 small firms from the scope of this tax.’