Small businesses are showing confidence in the economy by taking on more staff, according to a new study by the Federation of Small Businesses (FSB).
The FSB’s new Voice of Small Business Index revealed that 15% of small businesses have increased their staff numbers in the third quarter of 2013, reaching the highest number since the Index began in 2010.
The FSB expects this to rise further due to the new Employment Allowance which launches in April 2014. This will enable small businesses to cut their National Insurance Contributions by up to £2,000. FSB research found small businesses will use this to boost staff wages (29%), employ additional staff (28%) and invest in resources (24%).
John Allan, national chairman for the FSB, said “Compared with a year ago, small businesses are employing more staff and looking to expand in the near future. This points to growing confidence from the UK’s small businesses.
“Our findings show that they Employment Allowance due to kick in next spring will have the desired effect. Through the measure, small firms are looking forward to taking on more staff, expanding their businesses and rewarding existing employees for their efforts.”