The national insurance contribution changes have been designed so that the impact is balanced fairly between individuals and employers, and between businesses of different sizes. The increase in national insurance contributions in 2011 represents only a small proportion of total business costs. Therefore, in the climate of stronger economic growth forecast by the Treasury and independent commentators in 2011 and beyond, the Government expect the rise in national insurance contributions to be an affordable contribution to fiscal consolidation.
This rise should also be seen in the context of the significant support available for businesses, including small businesses. Budget 2010 announced further measures, including an increase in the annual investment allowance, an extension of entrepreneurs' relief and a temporary increase in the level of small business rate relief.