Small firms to cut jobs ahead of NI hike The Federation of Small Businesses (FSB) has warned that one in seven small firms plans to cut staff ahead of the 1.25% increase in National Insurance that comes into force next year, with this potentially meaning 50,000 jobs could be lost. The FSB also revealed that than eight in ten SMEs do not plan to take on extra staff this quarter. FSB national chairman Mike Cherry said: "Tax rises will hit at the same time as a rise in the living wage, and against a backdrop of surging inflation and supply disruption."