Tax rises hurt SME's

Rising tax burden hurts SME outlook Confidence among small businesses has been shaken by increases in National Insurance contributions and dividend taxes, according to the Federation of Small Businesses (FSB), while inflation fears are also denting optimism. The higher tax burden will cause companies to curtail hiring and pare down investment, the FSB said. Mike Cherry, the lobby group’s national chairman, said: "As things stand, the planned hike to NICs - which serve as a job tax - will see firms with even less room to manoeuvre when it comes to investment, recruitment and reskilling, while leaving many with no choice but to raise prices."