Businesses 'need support' with retaining skilled staff

Small businesses need further assistance to enable them to protect their existing workforce, according to a new report from the Forum of Private Business (FPB).

The business group is arguing that in addition to providing a new £2,500 subsidy for employers taking on individuals who have been unemployed for at least six months, the Government should provide additional help for businesses who are struggling to retain their existing staff in the current economic downturn.

The FPB is calling for the Working Tax Credit scheme to be modified in order to support shorter working hours, with the process being based on actual hours worked, and income validated by the employer, rather than using calculations based on the previous year's earnings. The group is urging the Government to put forward an employment protection programme in the forthcoming Budget.

Phil Orford, Chief Executive of the FPB, said, 'It is important to remember that recruitment is still taking place, and for these employers this scheme is very welcome, but many small businesses are concentrating on trying to keep hold of their skilled employees. This should also form a central pillar of the Government's support strategy'.

The organisation has voiced its opposition to plans to increase maximum redundancy payments from £350 to £500 a week, and has also called for a freeze in the National Minimum Wage, and for the 0.5% increase in employers' national insurance contributions planned for 2011 to be scrapped.

The 2009 Budget will be delivered on 22 April. Visit our website regularly for the latest updates.