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CIPD calls for Budget cuts in payroll taxes to help keep people in jobs

While the chancellor, Alistair Darling, suggests that Government invest in helping the unemployed into work, the CIPD warns the Budget should be used to cut employers' National Insurance Contributions (NIC) to help keep people in jobs during the recession and create jobs for the young and long-term employed.

The CIPD and KPMG report 37% of employers believe cutting employers' NIC will be the most likely policy to help them through recession, followed by a reduction in corporation tax (19%) and in VAT (8%).

Darling has already suggested it would be "indefensible" for the Government to hold back from action to save jobs.

And The Observer reported earlier in the week that the Budget would include an investment from the Government of £2 billion to recruit more benefits staff, offer a subsidy for employers who take on staff who have been unemployed for more than a year, and guarantee either a job, work experience or training to people who have been unemployed for more than one year.

But John Philpott, public policy director are the CIPD, said: "This year's Budget should be about saving existing jobs as well as helping the jobless find work. Employers in general are urging the chancellor to adjust payroll taxes to support employment, while a majority of those in the manufacturing sector believe a short-time working subsidy would enable them to hold onto staff during the recession."

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