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NIC breaks: A tax on the south-east

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Speaking in the House of Commons Finance Bill debate, Labour MP for Luton South Gavin Shuker has claimed that, thanks to the introduction of National Insurance reliefs for start-ups outside the south-east (£5,000 tax break on National Insurance Contributions for each of the first ten people they employ), it now costs up to £50,000 more for an entrepreneur to start a business in the south-east of England.

Shuker, one of only two Labour MPs in the east of England, said: “if an entrepreneur wanted to start a new business in the greater south-east, they would find themselves some £50,000 worse off than if they had started their business elsewhere. Let us be clear about the impact. For my constituents in Luton South, that means that moving just two stops up the train line or two junctions up the M1 would effectively give them a £50,000 golden hello for starting up.”

Is he right? What are your experiences? Is the coalition government taking an anti south-east stance? 

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