Budget 2011: Extend NI holiday to all employers, accountants tell government

George Osborne should use the forthcoming Budget to exempt all employers, not just start-ups, from National Insurance payments for new recruits in their first year, experts have said.

According to Matthew Lee, managing partner at accountancy firm Bishop Fleming, the chancellor's announcement on 23 March is "an opportunity to help private companies to meet the challenge he has set them to deliver the growth that will compensate for public sector cuts".

Lee called for the government to extend the scheme allowing new businesses set up outside the London, South East and East regions to avoid paying National Insurance Contributions for their first 10 workers to new recruits employed by all companies. 

He also demanded a boost in tax incentives for businesses to invest in research & development and capital purchases that are due to expire next year and "real progress" on the promised tax-simplification.