Health and safety regulations are the costliest form of red tape for small and medium-sized companies according to new research by the Forum of Private Business (FPB).
The results of the survey, which questioned around 500 businesses, were announced today at the first FPB Small Firms’ summit in Westminster.
Nearly a third of all those surveyed thought that health and safety was the area of regulation that placed the most cost on their business.
PAYE, tax and national insurance rules were second, receiving 25% of the vote, and maternity and paternity rights were the third biggest cost with 11%.
“Regulations are the bane of the smaller business owner, costly in administration and a distraction from more profitable activity,” said Len Collinson, national chairman of FPB.
Smaller businesses are particularly affected by red tape, as they often do not have the time or means to deal with the extra paper work and legal issues that can arise.
“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 research was carried out by the FPB so it could be discussed at its Small Firms’ summit. The summit offers an opportunity for owners, directors and managers of smaller companies to meet each other and discuss the issues affecting them.
“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,” said Collinson.
The FPB was established in 1977. It is a non-party political organisation and pressure group funded by its members, which represents 25,000 UK-based private businesses.
© Crimson Business Ltd. 2006
