PRESELI Pembrokeshire MP Stephen Crabb is encouraging businesses to take advantage of a £2,000 tax cut.

The reduction in class 1 National Insurance Contributions (NICs) was announced by Chancellor George Osborne in the Autumn Statement.

The new Employment Allowance, which will apply from April 2014, will provide 1.25 million businesses and charities with a £2,000 cut on employment tax, making it easier for them to take on new employees.

Some 30,000 businesses in Wales will benefit from the scheme, with those employing five adults full-time receiving a tax cut of more than 80%. Businesses which are meant to pay less than £2,000 in NICs will pay nothing at all, taking 20,000 businesses in Wales out of employer NICs altogether.

Speaking from Haverfordwest, Mr Crabb said: “Small businesses are the backbone of the Pembrokeshire economy and this tax cut will provide real practical support for the smallest businesses in our County.

!Business confidence in Wales is at its highest level for 16 years and the Employment Allowance will make it easier for local businesses to grow, fuelling a jobs boost in our local economy.

!I’d urge all Pembrokeshire business owners to log-on to the HMRC website to find out if they are eligible.”

For more information go to www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics.