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Page last updated at 11:21 GMT, Friday, 25 June 2010 12:21 UK

East excluded from National Insurance holiday

Debrah McGurran, Political Editor, BBC East
By Deborah McGurran
Political Editor
BBC East

John Bridge, chairman of the Cambridgeshire Chamber of Commerce, says exclusion of the East from the NIC holiday will put the region at at a disadvantage.

The East of England is excluded from the National Insurance Contributions holiday for new businesses.

Measures in the budget outlined plans for start-ups in most areas of the UK over the next three years but not here.

The east, the south east and London will not be included in the exemption from employers' contributions.

Elsewhere, new businesses will not have to pay £5,000 national insurance payments for up to 10 workers.

'A disadvantage'

For businesses outside the eastern region it could mean a bonus of up to £50,000 a year for three years.

John Bridge the chairman of the Cambridgeshire Chamber of Commerce says the move will put this region at a disadvantage.

"In the east we have tremendous success in terms of business development and start ups.

"What we don't believe is right is that businesses here shouldn't have the same opportunities as businesses elsewhere."

Private sector growth

The government maintains that the three regions now included in the "Greater London area" have the highest density of private sector jobs in the economy already and therefore they do not need the support as this measure is designed to encourage private sector growth.

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