Businesses large and small are calling on the government to encourage firms to create more jobs by tackling National Insurance.

This week, the Forum of Private Business said the government should amend the current National Insurance holiday scheme for new businesses. Its call comes just a week after Sainsbury’s CEO Justin King also called for a National Insurance holiday for all businesses.

Speaking at the release of the supermarket’s interim results last week, King said: “Nothing does more for the health of the economy than having more people in jobs - it builds confidence, reduces the burden of unemployment on the state and increases retail expenditure. It is up to the government to decide the best way to achieve it, but one option could be a National Insurance holiday on new jobs for 12 months.”

Amending the National Insurance holiday scheme for new businesses would encourage them to employ more people, the FPB said. “Rather than applying £5,000 for each of the first 10 employees hired in the first 12 months, the scheme should apply £5,000 for each of the first two new members of staff hired by a micro business in the UK, for each of their first two years of employment,” said FPB’s head of policy Alex Jackman.

The FPB also laid out four other key areas the Chancellor should address to help businesses in his Autumn Statement next month - fuel duty, a cap on business rates of 2%, flexible working and alternative sources for financing.