Red tape costs small firms seven hours a week

02 10 2007 United Kingdom

Small businesses in the UK each spend seven hours per week complying with regulations, according to a new report

A report launched at the Conservative Party Conference in Blackpool shows that the average small business spends seven hours per week dealing with regulations and paperwork and form-filling.

The report published by the Federation of Small Businesses (FSB) outlines the benefits to the economy and society that would follow from businesses getting their seven hours back. Tackling the red tape burden would benefit both businesses and the communities in which they operate.

The FSB is concerned that the red tape burden is preventing small firms from growing and employing more people and working against other Government priorities such as increased community involvement by businesses and employee training.

The FSB wants to encourage the UK Government and the European Commission to deliver on their promises on deregulation. The Commission has committed to cutting red tape and is encouraging member states to follow suit. Estimates put the potential gain from deregulation at €150 billion across the EU.

A survey of entrepreneurs identified what they would do with seven extra hours per week:: 58 per cent of business owners would spend time training staff or working with schools; 50 per cent would spend more time developing their business; 39 per cent of business owners would devote more time to their local communities; 37 per cent would spend more time with their families.

Tina Sommer, FSB Chairman for EU Affairs, said: “Both the UK Government and the EU institutions are relying on entrepreneurs to create jobs and wealth. But the regulatory burden is weighing down small businesses.

“We have heard warm words from politicians before about cutting red tape, but it is now time for action. Shorter, simpler regulations will enable businesses to follow the rules more easily as well as protect their existing employees. They will also be able to use more of their seven lost hours to grow their businesses.”

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