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Forum announces five-point plan for jobs and growth in Autumn statement wish list

The Forum of Private Business has written to the chancellor ahead of next month’s Autumn Statement outlining a five-point plan to deliver jobs and growth for the UK economy.

Two points in the forum's wish list are a reduction in the costs of employment for business by amending the National Insurance Scheme and for the chancellor to abandon plans that would mandate flexible working for all employers, regardless of their size.

Amending the National Insurance Scheme was echoed last week by Sainsbury's chief executive, Justin King. He urged Osborne to reduce the burden of national insurance to help boost job creation and the economic recovery.

King said: "Nothing does more for the health of the economy than having more people in jobs - it builds confidence, reduces the burden of unemployment on the state and increases retail expenditure.

"It is up to the Government to decide the best way to achieve it, but one option could be a national insurance holiday on new jobs for 12 months."

The other points on the forum's list included making a 'serious and credible' announcement on fuel duty, introducing a cap on business rates of 2% and further incentives for private lenders through alternative sources of finance.

The Forum's head of policy, Alex Jackman, said: "This Autumn statement is a chance for the chancellor to make amends for the disappointment that was the March budget, and really show he understands the challenges the economy faces.

"More small businesses need to be incentivised to employ. We think the current offering is too complicated, and the take-up has been far less than predicted.

"Rather than applying £5,000 for each of the first 10 employees hired in the first 12 months, the scheme should apply £5,000 for each of the first two new members of staff hired by a micro-business in the UK, for each of their first two years of employment," he said.

Calling on the chancellor to abandon plans to mandate flexible working on all employers, Jackman commented: "The cost to businesses of auto-enrolling their staff over the next three years will be sizeable, so we don't think it's sensible to add another cost tier to business during this same time-frame in the current economic climate."

He added: "Many businesses across the country already allow employees the option of flexible working where it works for their firm. They are certainly not against such practices if the business can accommodate it. Legislating in an area that works perfectly well informally will create a bureaucratic process."