Wednesday 21 July 2021 11:27 am | Updated: Wednesday 21 July 2021 11:28 am

Support enterprise to repair economy, urges IoD

Cafe — British businesses are intending on launching a hiring spree this year to boost growth and restore revenues to pre-pandemic levels, but fear a lack of talent could throw their plans off course (Photo by Jenny Evans/Getty Images)

The UK government must support enterprise to stimulate economic growth after the Covid crisis recedes, according to the Institute of Directors.

The IoD stressed that fresh policies are needed to increase entrepreneurial activity and help businesses realign their operations to fit within the post-Covid economy.

Among the measures the IoD called for was a reduction in employers’ national insurance contributions for start-ups and businesses in the hospitality sector.

The organisation also urged the government to introduce tax relief on R&D spending to incentivise investment.

The calls come as research conducted by the IoD shows one in four businesses think employment costs and taxes are a barrier to growth.

36 per cent of firms also think the regulatory burden stifles growth.

Dr Roger Barker, policy director at the Institute of Directors, said: “While the pandemic is by no means over, its important the government thinks ahead to provide a clear runway for businesses to take-off.”

“Rapidly growing firms and the middle market will be the driving force for our growth, so supporting them now can drive gains to our growth and productivity in the long-run.”