As part of the Government’s Red Tape Challenge a new initiative has been launched which invites small business owners to reveal their experiences of excessive red tape. The Red Tape Challenge was launched by the Government in April this year to give the public the opportunity to have their say on more than 21,000 regulations.
The new initiative, which makes up part of the challenge, has been extended to August to enable small firms and their staff to come forward with examples of how multiple inspections and conflicting advice have affected the running costs of their business.
Business Minister, Mark Prisk said of the scheme:
“Inspections and enforcement are the most noticeable way in which business experiences regulation. The Red Tape Challenge has already highlighted a number of ways in which compliance problems are getting in the way of businesses, but we weren’t getting enough information on the problems.”
Attempts to reduce the legislative administration will be warmly welcomed by small businesses who find red tape one of the most difficult challenges they face.
However, the recent extension to paternity leave and pay, and the removal of the Default Retirement Age has conflicted with the coalition’s pledge to cut red tape. With further changes on the horizon for pensions, flexible working, paternity and maternity, small firms could potentially face yet more headaches.
A spokeswoman for the Federation of Small Businesses (FSB), said:
“Our research found that increased regulation created difficulties in expanding for 27 per cent of businesses, while 33 per cent said regulation is the biggest potential obstacle to growth, only behind cashflow and the recession.”
Photo by Keith Williamson – CC
