Red tape costs soar by £77bn

Date: 30th March 2009

Regulatory burden now costs the UK's small business community £77 billion more than it did 11 years ago, it has been shown.

Statistics from the British Chambers of Commerce (BCC) latest burdens barometer revealed that the price of red tape and regulations has rocketed by £10 billion in the last year alone.

In response, the organisation and an expert from Manchester Business School have called on the government to help small firms - such as limited companies and partnerships - live through the recession by cutting their regulatory obligations.

David Frost, director general of the BCC, said: "The government needs to get serious about reducing the massive burden of regulation on business.

"Cutting unnecessary burdens ... is one way of providing instant and inexpensive help to British firms."

He added that the UK's small business community was "facing the toughest economic environment for a generation".

Meanwhile, the manufacturers' organisation EEF has called for the government to overhaul corporation tax at next month's budget report.