Battle call to firms over rise in National Insurance

The campaign is supported by some of the UK's most powerful business groups and calls for the one per cent employer National Insurance Contributions increase – planned for April 2011 – to be overturned.

The petition states that the planned rise is "a tax on jobs" and will discourage companies of all sizes from taking on new staff at a critical point in the economic recovery.

The Yorkshire and Humber Chambers of Commerce has predicted the increase will cost businesses 340m a year - the equivalent of 14,700 jobs or the entire budget of regional development agency Yorkshire Forward.

The director of policy at the chambers, Nick Pontone, said: "We agree that the Government needs to take strong action to reduce the eye-watering deficit in the public finances but national insurance is totally the wrong place to start.

"It's a tax on jobs which should be the last resort not the first response. Control of public spending should be the first priority and account for the bulk of deficit reduction.

"The fact that the UK's major business organisations have come together behind this campaign sends a powerful message and we would urge every business from Yorkshire and Humber to add their support."

Mr Pontone said unemployment had risen by 65,000 in Yorkshire during the past year.

The petition was signed by the leaders of the British Chambers of Commerce, British Retail Consortium, Confederation of British Industry, Chartered Institute of Personnel and Development, Forum of Private Business, Federation of Small Businesses and the Institute of Directors.