FSB says red tape is 'like an additional tax'

Date: 19th July 2010

The Federation of Small Businesses (FSB) has described the burden of facing regulations in the UK as like an "additional tax" on the country's smaller firms.

According to the organisation, many businesses struggle to cope with the pressure of the UK's complex regulatory system.

The comments follow the publication of a report by the Local Better Regulation Office, which revealed that one in six businesses rate complying with regulations as their "biggest challenge".

Figures from the study show that almost half of the 2,000 firms questioned feel their local authority does not understand their sector well enough to regulate them.

Clive Davenport, the FSB's policy chairman of trade and industry, said: "Small businesses create a huge proportion of the country's wealth yet are most vulnerable to inconsistency in regulation.

"Firms with few employees face considerable pressure on their time and resources, and are in no position to deal with overly complex administration. Red tape is like an additional tax."

Posted by Jacob Williams