'Cut VAT and NICs to help entrepreneurs'

A TARGETED VAT cut and a National Insurance Contributions (NICs) holiday must be introduced to help the region’s entrepreneurs, according to Hertfordshire’s Federation of Small Businesses (FSB).

The federation’s Voice of Small Business Index fell by 9.6 points from +0.3 to -9.3 in the third quarter of this year (July to September) as more businesses lost confidence in the economy.

The FSB’s Pam Charman said: “As businesses come to terms with the double whammy of falling revenues and rising costs, it is no wonder that they’re losing confidence, and, unfortunately, as their overheads increase, one way to control costs is to lay off staff. 

“It is the first time since we started the index that we have seen more people believe that they’re going to lay off staff than take them on. This has to show the Government that a more robust plan for growth is needed.”