Show Red Tape the Red Card, bosses urge

15 June 2006

Proposals to exempt small business from a raft of complex regulations received the backing today of business leaders. As small firms suffer disproportionately from the affects of red tape, the Institute of Directors (IoD) said such an exemption was long overdue. With red tape already costing the economy an estimated £150 billion freeing up small firms would inject a much needed boost, the IoD predicted.

The employers’ organisation spoke out in support of a Ten Minute Rule Bill put forward by Nick Herbert MP. The Bill is due to have its second reading in the House of Commons tomorrow.

James Walsh, Head of Regulatory Affairs at the IoD, said:

“The task of keeping up to date with the vast array of regulatory requirements is just too much for many small businesses. Requiring Ministers and officials to consider a small firm exemption for every new measure would ease the burden on business and would help to concentrate minds in Whitehall. The IoD has advocated this approach for some years; it is time for politicians of all parties to embrace it.

“Of course, introducing small firm exemptions would not let Ministers off the hook. They would still need to do more to stem the overall flow of new rules. IoD members running firms of all sizes tell us that, despite the Government’s many ‘Better Regulation’ initiatives, they are still waiting to see an impact on their businesses.”