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Press Release

FSB Reveals Continuing Inspection Burden of Small Businesses

6 December 2005

The FSB has published a further report on the powers of entry and inspection of various government agencies and the adverse impact they have on small and medium-sized businesses (SMEs). The publication comes the day after of the Chancellor’s Pre-Budget Report, where Gordon Brown gave a promise to tackle red tape and its impact on small businesses.

Inspector at the Door 2005, by Professor Robert Baldwin of the London School of Economics and Richard Anderson of the Corporate Risk Group, in association with the FSB, found that over 40 new statutes that allow entry and seizure have been added since 2000, bringing the total to over 340.

The report identified the five most burdensome regulations as employment legislation, data protection laws, health and safety legislation, environment and waste management controls.
According to the report, 81 percent of SMEs across the UK would like to see one-stop-shops established to give regulatory advice. This would go some way to help SMEs understand their obligations in the most onerous areas of regulation.

Wilfred Mitchell, FSB Policy Chairman said:

“At a time when the Government is saying they want to lighten the load on small businesses, it is very disappointing to see that small firms face more inspections than ever before.

“The report’s conclusions are crystal clear. The regulatory regime, in spite of attempted improvements since 1999, has not created a level playing field for small businesses.

“SMEs should always be the priority when considering the competitive, administrative and financial effects of new regulation.

“On the day after of the Chancellor’s Pre-Budget Report, these findings offer a vital opportunity for the new Government initiatives on better regulation to actually deliver a reduction in red tape which Gordon Brown has promised to tackle in his speech to the House of Commons.”



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