FSB welcome attack on red tape
03 June 2010
FSB welcomes attack on red tape
03 June 2010 PR/2010/28
FSB News Release
PR 2010 28
Issue date: Thursday 03 June 2010
FSB welcomes attack on red tape
The coalition Government's proposals to slash the red tape stifling business growth is welcome news for the UK's 4.8 million small firms, says the Federation of Small Businesses (FSB).
Research by the FSB shows that nearly a third (27%) of small firms that wanted to expand said the proposed increases in regulation is a difficulty in doing so. Of businesses planning to downsize or close, half said that regulatory burdens were very important in that decision. This was the second most important factor behind the retirement of the business owner for firms closing.
The FSB welcomed proposals outlined by the Business Secretary, Dr Vince Cable, to simplify red tape, including:
- A "one-in, one-out" to regulation which will control and reduce its burden
- The creation of a new Cabinet Star Chamber that will lead the Government's drive to reduce regulation which is stifling growth, especially of small businesses
- An immediate review of all regulation in the pipeline for implementation which has been inherited from the last Government.
The FSB is also keen that Vince Cable sends a strong message to his colleagues in other Government departments urging them to explore all alternatives to regulation before legislating. The FSB believes that given these tough economic times, costly legislation should be a last resort.
Mike Cherry, Policy Chairman, Federation of Small Businesses, said:
"Regulation has long been stifling business growth so these plans to put an end to the excessive legislation that choke small businesses is welcome news. It is a real victory that our calls to simplify the regulation system have finally been heard.
"Small firms have repeatedly said that the burden of regulation and the time it takes to comply with is just too much and could prevent them from taking on staff – and stunts economic growth. We now need to see the Government give detailed plans as to how these will take affect so that small firms can get on with growing their business, rather than spending precious time filling in forms to say they will do just that."