Business groups have begun a campaign to pressure the government into reversing a planned increase to National Insurance.
The government has said that it intends to increase employers' National Insurance Contributions (NICs) by one per cent next April. But business groups including the British Chambers of Commerce, Federation of Small Businesses and Forum of Private Business have criticised the move, claiming that it amounts to a "tax on jobs".
The pressure groups have written a letter of protest to the government, urging it to rethink the move.
Many of these groups are traditionally very hostile towards any tax increases. The Federation of Small Businesses has claimed that the planned increase would result in the loss of 57,000 jobs from SMEs that could no longer afford to keep employees.
The government is struggling to keep a grip on the UK's growing financial deficit. Despite claims that they would reduce taxes for businesses, a potential Conservative government would also find it difficult to keep levies down.
