FSB backs 'attack' on red tape

Date: 4th June 2010

An industry body representing the UK's small enterprises has voiced its approval of new government plans to reduce business red tape.

The Federation of Small Businesses (FSB) has welcomed an announcement from business secretary Vince Cable, which detailed how the new coalition intends to rid the UK of "excessive" red tape.

Included in the plans is a "one-in, one-out" regulation policy, the creation of a Reducing Regulation Committee and an immediate review of regulations set to be implemented that were introduced by the Labour Party.

Commenting on the action plan, Mike Cherry, the FSB's policy chairman, said: "Regulation has long been stifling business growth so these plans to put an end to the excessive legislation that choke small businesses is welcome news.

"Small firms have repeatedly said that the burden of regulation and the time it takes to comply with it is just too much and could prevent them from taking on staff - and stunts economic growth."

A recent report by the British Chambers of Commerce revealed that the cost of complying with regulation has increased by £11 billion over the past year.