Firms take scissors to £418m of red tape

Date: 4th December 2008

British small businesses save about £418 million every year by cutting down on paperwork and red tape, according to new research.

An investigation by the department for business, enterprise and regulatory reform found that the government's Employment Guidance Programme had helped firms to better understand business law, and therefore make savings.

As a result, the department has now had to increase its estimations of £365 million saved in administration costs by May 2010.

Pat McFadden, minister for employment relations, commented: "Our ambitious programme to cut the costs of regulation on business is already achieving positive results, but there is still more we can do.

"In the present economic climate we are focussed on doing everything we can to help business, without harming rights at work."

An investigation conducted by research group ORC earlier this year found that there had been major cuts in the amount businesses spend on administer maternity leave, flexible working applications and national minimum wage.