Red Tape is forcing the
owners of small firms to work longer hours and is stunting business
growth. Eight out of ten bosses of small and medium sized companies
feel they fail to give their business sufficient attention because
of the weight of bureaucracy, according to research from an employment
law firm.
The survey of more then 3,000 firms
found that a third of respondents spend up to 11 hours a week
on regulatory paperwork and 33% believe the burden has held back
their company growth prospects.
Recent changes to employment law
were a particular cause for concern.
The government is aware of the problems
and Chancellor Gordon Brown has spoken repeatedly of his commitment
to simplifying VAT and regulatory regimes, as well as promoting
more efficient inspection and enforcement systems.
But these changes appear to be making
little difference. Recent research by the Federation of Small
Businesses revealed that small firms devote five times as many
hours to red tape as larger companies and find the cost of compliance
five times greater per employee.
It’s true there have always
been bad employers who ignore or dodge the law but too often it
seems that the burden falls on the good guys.
The forum of private business has
found that imminent health and safety regulations have replaced
recent changes to employment law as the main concern among small
and medium firms.
David Bishop of the Federation of
Small Businesses says: “Transferring responsibility for
the payment of working tax credits from the employer to the Inland
Revenue would be a step towards reducing the bureaucratic burden.”
As featured on thisismoney.co.uk.
