Health and safety tops 'red tape' costs

UK health and safety regulations are the costliest form of 'red tape' - smaller businesses feel the cost of red tape more acutely as they have fewer resources to deal with it.

New research by the Forum of Private Business (FPB) shows that health and safety regulations are the costliest form of red tape for small firms.

The results of the survey of just under 500 businesses were announced at the first Small Firms' Summit, at Central Hall, Westminster on 18 October 2006.

Len Collinson, national chairman of the FPB, will reveal the results of the study at the event, which will create a unique opportunity for owners, directors and managers of smaller companies to meet each other and consider the issues affecting them.

They will be heard by key decision-makers and influencers, with leader of the Conservative Party, the Rt Hon David Cameron MP, making the keynote speech.

Collinson said red tape continues to restrict the growth and profitability of small firms: "Regulations are the bane of the smaller business owner, costly in administration and a distraction from more profitable activity.

Smaller businesses feel the cost of red tape more acutely than their larger competitors as they have fewer resources to deal with it.

These results show that health and safety rules are thought of as particularly onerous." The FPB, which represents around 25,000 small and medium-sized businesses in the UK, carried out the research for discussion at the Small Firms' Summit.

The survey shows that 30% of respondents thought health and safety was the area of regulation that placed the most cost on their business.

PAYE, tax and National Insurance rules were second with 25% of the vote, whilst 11% thought maternity and paternity rights cost their firm the most.

William Sargent, Executive Chair of the Better Regulation Executive (BRE), will also be speaking at the Small Firms' Summit.

Collinson said it is clear that the owners of smaller businesses have points to make: "The Small Firms' Summit will allow owner-managers to air their views to like-minded individuals and to those decision-makers who have the ability to lighten the burden." The summit, which is sponsored by Barclays, will have speakers on hot topics and debates on major issues for smaller businesses.

Alison Hopkins, managing director for Barclays Local Business, said: "By providing banking services to 775,000 businesses we know only too well that many small business owners worry about regulation.

A relationship managed service from their bank should help to alleviate these regulatory headaches and it is worthwhile businesses using supporting software which we have in place to guide them through the maze.

The summit will be a great opportunity to raise the profile of the issues impacting small businesses and identify ways in which these burdens can be eased.".

Back to top