Failing NICs holiday scheme in steep decline While initial Government estimates indicated that up to 400,000 companies would take part in the scheme, creating 800,000 jobs, just 13,769 firms have used it since it was launched in September 2010. In the three months to March 31, 2,605 start-ups have taken advantage of the holiday, down from 4,300 in the final quarter of last year. There was also a 14pc monthly decline in take-up between February and March. Shadow business secretary Chuka Umunna said: "As we saw with the National Audit Office's report on the Regional Growth Fund last week, ministers" growth policies have been characterised by confusion and incompetence." Labour is calling for a temporary national insurance tax break for all small firms taking on extra workers. A Federation of Small Businesses (FSB) report published on Monday also called for the scheme to be extended to existing businesses currently employing up to four members of staff. "The effect would be to stimulate employment growth in the microbusiness environment, and could provide impetus to the scheme," the lobby group said. Mr Maugham said there would be "no harm" in removing the geographical restrictions on the holiday "given how few businesses have signed up." London has five boroughs in the top ten areas for highest unemployment in the UK so could really benefit from this scheme. The set-up period for a new business can be a busy, chaotic time for the management but it is important that they take advantage of every tax incentive they can. Mr Maugham noted that there was a brief jump in applications in October and November 2011, when 3,593 companies submitted applications for the relief. This followed a Government campaign in which 144,000 letters were sent out to potentially eligible companies. Unfortunately the effect of the marketing blitz has worn off fairly quickly ... HM Revenue & Customs should consider promoting [the scheme] more consistently in order to gather a greater momentum. The FSB also said marketing of the scheme should be improved.