- January 5, 2015 at 9:43 pm #33720
It is possible that there will be more than 7,500 jobs created in Yorkshire if the changes to National Insurance go ahead. There is a new rule that when new workers are taken on there will be a reduction in the amount of National Insurance that manufacturing companies have to pay.
This information has come from BDO which is an accountancy and business advisory firm. They carried out some analysis and calculated that if the National Insurance was temporarily reduced for manufacturers that companies could afford to create 7,597 jobs.
BDO is lobbying for the medium sized business and asking the government to consider reducing the National Insurance in order to help them. They worked out that 2,969 jobs would be created in this sector with an additional benefit of jobs being created in other sectors as well.
The head of BDO in Yorkshire, Terry Jones explained that manufacturing is a vital part of the UK economy as well as the Yorkshire region and it is the medium sized businesses that have the most capability of providing extra jobs if this policy came out.
The company calculated that 192,000 people are employed by medium sized manufacturing companies and this generated over £29bn in revenue. BDO have said that by reducing employers National Insurance in the manufacturing sector over four years they will be able to contribute towards the governments goal of doubling exports by 2020.
The policy was something that was mentioned by George Osbourne in his autumn budget statement when he said that the employers National Insurance would be lifted on apprentices under the age of 25. He also stated that the government had a goal to have three million apprentices by the next parliament and almost two million have done it since 2010.
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