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Government announces ‘deregulation drive’ for small businesses

The Government has announced a package of measures aimed at reducing the red tape burden for the UK’s small businesses.

Speaking at a Federation of Small Businesses (FSB) conference, Prime Minister David Cameron pledged to take further action on red tape, with more than 3,000 rules to be scrapped or amended.

Business groups have broadly welcomed the announcement, with the British Chambers of Commerce acknowledging the progress made on domestic regulations, but calling on the Government to include tax changes and EU regulations in its ‘one in, two out’ policy for new regulations.

Meanwhile, the Forum of Private Business (FPB) welcomed the news but urged the Government to avoid making frequent changes to regulations in the future.

The FPB’s Alexander Jackman commented, ‘The constant churn of employment law regulations provides as much of a burden to small businesses, who have to invest time and resources – or expensively outsource – in order to understand areas. Parental leave is a prime example. Businesses accept the need for it, but are frustrated that periods of leave and processes constantly change’.