The British Chambers of Commerce has urged the prime minister to adopt a five-point plan to encourage job creation among small businesses.

The British Chambers of Commerce (BCC) has urged the prime minister to adopt a five-point plan to encourage job creation among small businesses.

The plan calls for immediate action to reform the employment tribunal system, a no fault dismissal route for all companies with fewer than 250 employees, and a three-year exemption from pensions auto-enrolment for sole traders taking on their first employee.

Exempting sole traders from pensions auto-enrolment would remove a significant barrier for those business owners looking to expand their business and take on their first member of staff, the BCC says.

Further requests are for the cancellation of the proposed extension of the right to request flexible working to all employees and immediate changes to the Treasury’s existing National Insurance Contributions holiday.

The current National Insurance Contributions holiday is poorly targeted, says the BCC, meaning that fewer than 8,000 firms have taken part in the £940 million scheme. Currently the NICs holiday focuses on start-up date when very few new businesses take on staff in their first year.

Instead, the scheme should apply to businesses from the date they take on their first employee, rather than start-up date, according to the organisation.

John Longworth, BCC director general says, ‘Businesses across Britain are busting a gut to strengthen growth at a time when there are many risks and potential pitfalls. By adopting these pragmatic, low-cost proposals, the government can give companies greater confidence to take on staff and create new jobs.

Longworth adds that giving companies greater flexibility to hire and fire will actually spur more businesses to take people on.

‘Current arrangements generate too much legal risk, stopping many business owners from taking on new employees, whether we’re talking about young apprentices, experienced staff members, or the unemployed,’ he says. ‘Boosting confidence by reforming dismissal rules for example, will create jobs.'

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