Red tape reforms get FSB support

Leading small business group the Federation of Small Businesses has expressed its support for the Legislative & Regulatory Reform Bill, designed to cut red tape for small firms.

Proposals in the Bill, which is currently at its second reading in the House of Commons, would enable the Government to deliver reform of outdated or over-complicated legislation more quickly and make EU legislation easier for UK organisations to deal with.

‘Regulation is a large burden on small businesses,’ said John Walker, FSB National Policy Chairman, ‘Our members tell us that remedying this situation must be a priority for Government and we support this Bill as part of the solution to achieve that.’

An FSB survey of its members revealed the following:

  • Small businesses spend an average of 28 hours per month filling in forms.
  • Administrative burdens for small businesses are five times more costly and five times more time-consuming than for large firms.
  • Small firms spend almost five per cent of their annual turnover on compliance.
  • The annual cost of payroll administration is £288 per employee in firms with between one and four but only £5 in a business with over 5,000 employees.

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