NIC Holiday off to a slow start

The Regional National Insurance Contributions (NICs) holiday for new businesses has got off to a slow start. It was due to run from September 2010 and the objective was to “move towards a new and more balanced model of economic growth by promoting the formation of new businesses in areas that are most reliant on public sector employment.”  It was estimated that, over three years, “around 400,000 employers will claim the relief with regard to around 800,000 employees” (HMRC impact assessment).

According to figures to 21 November 2011 only 3,345 employers are claiming for 2010-2011 covering 12,411 jobs (10,170 successful employer applications in total) – see Parliamentary Deposited Papers DEP2011-2087.

Maps of private and public sector employment are available here from ONS (national statistics) but the impact of commuting and other factors mean that analysis is not straightforward. For a subregional analysis covering of some of the issues, see this article .

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