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Wednesday August 6th 2008

Red tape plans not a moment too soon, say small businesses

Archived article dated Wednesday August 6th 2008

The Forum of Private Business (FPB) is welcoming the Government's plans to reduce the cost of red tape for businesses and is encouraged that it has acknowledged the burden of regulation placed on small firms.

It has, however, some reservations about the details of the proposals. The FPB's members called for action to be taken in a ballot vote in March this year in which 84% of respondents agreed that 'The Government's regulatory simplification plan should be extended to include policy costs.' Phil Orford, the FPB's Chief Executive, launched a campaign in June this year calling on decision-makers in Westminster, Brussels, Northern Ireland, Scotland, and Wales to 'Think Smallest First', in order to reduce the administrative burden of new and changing regulations on small businesses. MPs are being asked to sign the 'Think Smallest First' pledge and 'take action to ensure that micro-businesses - those with fewer than 10 employees - are considered first in the development of new and changing policies'. Brian Binley MP, the Conservative's Business Relations Sector Leader for Small Businesses was one of the first MPs to put his name to the Pledge.

Despite being encouraged that the Government is finally taking action, the FPB has some reservations about plans to introduce regulatory targets for government departments. The FPB's Research Manager, Thomas Parry, said: "In the past, government impact assessments have underestimated time and requirements for small businesses. Our own research has shown that the time required by our members to unravel the complicated tangle of red tape and do what is expected of them as owners and managers is significantly more than the Government's estimations." The FPB would like to highlight the need for businesses and the Government to come to an agreement on the definition of 'red tape'. Once this has been agreed, the FPB plans to survey its members on an annual basis to monitor the programme for reductions in the costs of dealing with red tape.

Tagged as: fpb | red tape

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