By Daniel Hunter
Following suggestions that George Osborne is looking at a plan under which employers would not have to pay National Insurance contributions for any job-seeking under-25s they employ — a policy drawn up by the Million Jobs campaign — BDO tax partner, Richard Rose, comments:
"Rumours of the Chancellor announcing an exemption from employers' national insurance for unemployed workers under 25 who are taken on by businesses are to be applauded as a step in the right direction to stimulate medium-sized businesses to grow, and in particular those that export. It will be interesting to see how long the exemption would apply for.
"Of course, a more structural reduction in employers' national insurance would be a more powerful statement of intent from any Government to support business growth and a growth in jobs. As we approach the Chancellor's Statement on 5 December, the Chancellor may give in to lobbying in this area to reduce employers' national insurance costs either by way of a rebate or holidays. Recent surveys have indicated that a reduction in employers' national insurance is the number one recommendation from businesses to encourage them to take on new workers."
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