NI start-up deal labelled unfair to South-east
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LEBC Group divisional head of individual savings and investment Kay Ingram says the Government’s National Insurance exemptions for new start-ups outside London and the Southeast are unfair.
The emergency Budget revealed that new businesses setting up outside London, the South-east and the East of England will be exempt from £5,000 of National Insurance payments for the first 10 staff.
Speaking last week at an Aviva round table debate on the Budget, Ingram acknowledged the need to rebalance the economy but said the provisions are unfair on businesses and entrepreneurs in the South-east.
She said: “All the personal tax allowances are the same throughout the country but they do not take account of the fact that people in the South-east and London have higher salaries and have to pay more for their homes and to get to work.
“There are potentially good businesses in London and the South-east that could start up and expand to the rest of the country. It is unfair on businesses and entrepreneurs in the South-east not to give them the same incentives as those people they will be competing with for work and business in the North.”
First Action Finance head of communications Jonathan Cornell said: “I agree with the points about regionalism but if you look at the success of London and South-east economically, it seems to outperform many other areas.”
Aviva UK Life director of intermediary Simon Bradley said it was important not to stifle the South-east but welcomed the efforts to boost economic regeneration in other parts of the UK.
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