Too much government regulation is costly to business and preventing entrepreneurial drive, according to a report by the Better Regulation Commission (BRC).
Britain’s entrepreneurial spirit is being threatened by a culture that demands the progressive elimintation of risk through more and more regulation, the BRC claim.
“Britain is famous for the achievements of our entrepreneurs, risk takers, adventurers and explorers,” said Rick Haythornthwaite, chairman of the BRC.
The BRC was established in 2005 to provide independent advice to government, from business and other external stakeholders, about new regulatory proposals and performance.
The report comes hot on the heels of a recent survey which said that health and safety is the biggest red tape cost to small and medium-sized businesses.
“Of course we welcome guidelines that promote the safety and well-being of employees,” said Nick Goulding, chief executive of the Forum of Private Business (FPB). “But we must encourage the growth of small businesses rather than hamper their development through unnecessary regulation.”
Smaller firms do not have the time or resources to make sense of the amount of government regulation, argued Goulding.
“What we need is a realistic appraisal of the regulatory burden,” added Goulding.
“Our priorities should be to protect employees rights without restricting the growth and profitability of small firms.”
© Crimson Business Ltd. 2006
