Red tape burden costing business £12bn a year

Placing a figure on how much red tape actually costs businesses really brings home the size of the burden. Research by the Forum of Private Business reveals that complying with regulation costs small businesses in the UK a staggering £12bn a year and that business owners/managers devote an average 37 hours per month to keeping up-to-date with paperwork relating to legislation - when does anyone in this industry find time to cut hair?

In light of the ever-growing legislative mountain, the FPB is calling for a freeze in new business legislation to allow the government to re-asses the situation and properly explore just how much red tape is being passed on to the already beleaguered business sector.

With the pre-budget report scheduled for 9 December, the FPB is lobbying government to ease regulation on small businesses, but first it needs to conduct a thorough review, says the organisation.

Said The FPB's policy representative, Matt Goodman pre-election would be the perfect time to launch the first comprehensive regulatory review. "The government must ensure that regulations are proportionate to their aim," said Goodman. "We want departments to get to grips with all the various aspects of the regulatory burden on business and a comprehensive regulatory review would provide just that sort of understanding."

Beleaguered by Bureaucracy

The National Hairdressers' Federation secretary general, Eileen Lawson supports any move to reduce the red tape burden.

Said Eileen: "We know about the unacceptable burden of bureaucracy based on what our members say and experience primarily with regard to employment law but also health and safety and wages legislation. We know this from the number of calls our members have made to both us and our Legal Lifeline asking for help. We deal with more than 50,000 calls a year on these subjects.

"The NMW, which I discussed with the Scottish Affairs Select Committee this summer, is an example of how complexity means it is easy for people to inadvertently get it wrong. We want all statutes written in such as way that it is easy for employers to get right. This is what I have always promoted to the Low Pay Commission when it has been considering the NMW regulations and, in particular, how these are applied to apprenticeships.

"The majority of employment law is written as if everybody has professionals and layers of management at their disposal to handle the multiple levels of procedure and appeal. This does not exist in micro and small businesses."

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