THOUSANDS of South Yorkshire businesses will be given help to create new jobs through changes to tax and national insurance contributions according to Deputy Prime Minister Nick Clegg.
The Sheffield Hallam MP said, as well as measures to ‘help the squeeze on household budgets’, the coalition’s Budget was seeking to ‘encourage protection of jobs’ and for employers to take on extra staff.
Across Yorkshire and the Humber, Mr Clegg said 65,000 small businesses will have the first £2,000 of employees’ National Insurance contributions paid for by the Government.
About 30,000 of the companies will pay nothing towards National Insurance at all, as a result.
Meanwhile, firms will also benefit from a cut in corporation tax, which drops from 28 per cent to 24 next month and will fall to 20 per cent by 2015.
Mr Clegg said: “We are doing things to ensure the wheels of the economy keep turning by bringing down corporation tax to the lowest rate in a generation and by giving small businesses a £2,000 NI break.
“The aim is to let businesses keep more money so they can use it to invest and create more jobs, reducing unemployment and improving prosperity.”
He said increasing personal tax free allowances to the first £10,000 earned would lift 21,280 people in Sheffield out of paying income tax altogether.