Business regulation freeze could provide ‘second economic stimulus’
Putting a freeze on business regulation changes could create over 300,000 jobs and provide a second economic stimulus, the Federation of Small Businesses (FSB) has said.
Commenting ahead of the Conservative Party Conference, the FSB highlighted the regulation-related difficulties currently being faced by small businesses in the UK. A recent survey of its members revealed that some 27% of small businesses were deterred from expanding because of regulatory burden.
The FSB also quoted the Government's own figures, which showed that 60% of businesses believed that regulatory burden was an obstacle to success. The findings have led the FSB to create the paper ‘Regulatory Reform - a route to economic recovery', which proposes the following:
• A suspension of business regulation during the recession and for the first 18 months after recovery.
• A simplification of current laws to assist those businesses being hampered by maternity and paternity law, discrimination law, and health and safety legislation.
John Wight, National Chairman for the Federation of Small Businesses, said:
"We cannot and must not underestimate the burden that unnecessary regulation puts on small businesses. Around half of all firms planning to close or down-size were influenced in that decision by the heavy impact of regulation.
"The FSB is urging the Government to give the UK's regulatory environment a strategic overhaul, to provide it with what will amount to a second economic stimulus, to boost growth and employment."
05/10/09
