Government ignores rules on better regulation for businesses

06 04 2008 United Kingdom

Today marks the first of two common commencement dates for business regulations in 2008.

These dates are designed to make the UK's regulatory environment more predictable, but according to the FSB the government is ignoring its own rules by introducing regulation throughout the year.

The Federation of Small Businesses says that government is failing to meet its commitments to common commencement dates and to reducing the regulatory burden.

No less than 82 new pieces of business legislation will be introduced on April 6, says the FSB, an increase of 12 per cent on the same day last year.

But the FSB claims that other regulations are introduced at different times outside the two common commencement days. These include the London Low Emission Zone introduced on February 4 and changes to rules on employing foreign workers contained in the Immigration, Asylum and Nationality Act (February 29).

According to the government’s own Annual Survey of Small Businesses’ Opinions, over-regulation has inhibited 90,000 small businesses from growing.

John Wright, FSB National Chairman said, “By ignoring its own common commencement dates the government is effectively sneaking regulation in through the backdoor in the hope that no one will notice.

“At a time of growing economic doubt and rising youth unemployment the government is stunting the growth of the same small businesses that are expected to deliver innovation, growth and jobs.

“If each of those 90,000 small businesses created just one more job we could fill Wembley Stadium with new employees. This should be the government’s target.”

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