Red tape plans are 'schizophrenic', says FSB

Date: 6th October 2011

Small business owners have been told that the UK's current approach to cutting red tape is "schizophrenic".

The Federation of Small Businesses (FSB) has accused the government of introducing new rules, while attempting to ease red tape.

In an interview with BBC On the Money presenter Declan Curry, the organisation claimed that the government's proposals to alter employment tribunals do not constitute a growth plan.

Andrew Cave, head of policy at the FSB, said: "Frankly, it is a bit schizophrenic at the moment, when you are introducing more red tape around employment, but also trying to make it easier with one measure.

"I think certainly, when it comes to tribunals there is a huge fear around the threat of tribunals for employers [and] potential employers as well. So it is welcome if we see a change there. But that comes on the same weekend that we have seen a raft of new employment laws coming into effect."

Mr Cave added that while the perception of red tape is often worse than the actual laws in place, this is enough to put businesses off taking on new staff.

Posted by Emily Smith