The Government appears poised to axe its flagship New Enterprise Allowance scheme only days after it announced it absolutely was u-turning on a pledge to abolish Class 2 NICs, the Association of Independent Professionals and the Self-Employed says.
IPSE has picked up on reports on tv saying Reported by reports within the British media, Treasury officials have told business leaders how the Chancellor is going to cut a scheme which was built to help people start their own personal business.
The Government had regularly praised the achievements the scheme – which has helped over 100,000 Britons start their own individual business since 2011 – but it surely has now emerged which the Chancellor just isn’t anticipated to renew it for the Autumn Budget.
The move was your second blow for the self-employed inside Round the clock, after yesterday the costa rica government announced it had been abandoning a pledge to reduce tax for many the UK’s smallest businesses.
Andy Chamberlain, IPSE’s Deputy Director of Policy, said: “The latest Enterprise Allowance has put over 100,000 people towards the path of viable work, through the white van man into the one-woman band.
“Encouraging people into self-employment and also to run their particular businesses is usually an overwhelmingly advantage for the economy, while it lowers unemployment and boosts Government coffers over the years.
“The Government should think very carefully before axing the Allowance, and IPSE would choose to notice reformed rather then repealed. IPSE is looking to get more detailed targeted financial and mentoring support for NEA-backed businesses following initial start-up period, to elevate their prospects of long-term success.
“What is doubly damaging concerning this move is always that it will come just 24 hours once the Government thought we would backtrack on a pledge to abolish Class 2 NICs – an awkward levy which applies and then the self-employed.
“Does it sometimes be correct that the supposedly pro-business Conservatives would attack small enterprise twice within Round the clock?
“Both moves are fundamental breaches of faith when using the self-employed. How could they come to be most likely to drive the UK economy forward when they are constantly assessing their shoulder wondering as soon as the Government arrive for the kids next.”