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Red Tape Crippling Retailers
Listed under: News
Published: Monday, June 29, 2009
Complying with new legislation is costing small businesses up to £12 billion a year – and wasting as much as 37 hours each month – according to a new survey by business advisory organisation Forum of Private Business (FPB).
The association is urging the Government to reduce the burden of red tape over the next year, particularly in light of the current economic climate, which has already seen a number of small businesses struggle over the last 12 months.
At the moment, employment law is the priciest measure to contend with, costing small businesses approximately £2.4 billion a year. Health and safety and taxes are also extremely challenging, seeing companies pay up to £2.1 billion and £1.8 billion a year respectively. Other time consuming procedures include paperwork relating to dismissals, redundancies, holidays and parental leave.
It is estimated that small businesses currently spend approximately seven hours a month on tax, eight hours on health and safety, four hours on building and property regulations and three hours on environment and waste matters. The FPB believes reducing legislation could lower business costs by as much as £3 billion per year.
Commenting on the report, The FPB's Policy Representative, Matt Goodman, says, "Our research shows that complying with red tape remains one of the major cost burdens facing smaller businesses, swallowing up valuable time and money that could be used more profitably elsewhere. In addition, at a time when protecting both workers and businesses should be a priority, regulations are increasingly burdensome as businesses take on more staff."
Retailer Angi Stevenson of craft shop Anstey Home Crafts in Leicester agrees legislation needs to be reduced. She says, “It is a terrible inconvenience and takes up at least one whole day each month. I generally try to put it off as much as I can.
“The hardest part is keeping up with what the new legislation actually is,” she continues. “There seems to be a new law introduced every other day at the moment and it can be really difficult to know what's what. I would definitely like to see the level of red tape in this country reduced. While I can understand why it is there, particularly when it comes to bigger corporations, as a small business owner – with just one pair of hands! – it is an added pressure I wish I didn't have. And I'm sure many other retailers would say the same.”
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The association is urging the Government to reduce the burden of red tape over the next year, particularly in light of the current economic climate, which has already seen a number of small businesses struggle over the last 12 months.
At the moment, employment law is the priciest measure to contend with, costing small businesses approximately £2.4 billion a year. Health and safety and taxes are also extremely challenging, seeing companies pay up to £2.1 billion and £1.8 billion a year respectively. Other time consuming procedures include paperwork relating to dismissals, redundancies, holidays and parental leave.
It is estimated that small businesses currently spend approximately seven hours a month on tax, eight hours on health and safety, four hours on building and property regulations and three hours on environment and waste matters. The FPB believes reducing legislation could lower business costs by as much as £3 billion per year.
Commenting on the report, The FPB's Policy Representative, Matt Goodman, says, "Our research shows that complying with red tape remains one of the major cost burdens facing smaller businesses, swallowing up valuable time and money that could be used more profitably elsewhere. In addition, at a time when protecting both workers and businesses should be a priority, regulations are increasingly burdensome as businesses take on more staff."
Retailer Angi Stevenson of craft shop Anstey Home Crafts in Leicester agrees legislation needs to be reduced. She says, “It is a terrible inconvenience and takes up at least one whole day each month. I generally try to put it off as much as I can.
“The hardest part is keeping up with what the new legislation actually is,” she continues. “There seems to be a new law introduced every other day at the moment and it can be really difficult to know what's what. I would definitely like to see the level of red tape in this country reduced. While I can understand why it is there, particularly when it comes to bigger corporations, as a small business owner – with just one pair of hands! – it is an added pressure I wish I didn't have. And I'm sure many other retailers would say the same.”
What do you think? Email your thoughts to .(JavaScript must be enabled to view this email address)
