WA73

Small firms 'bearing the brunt' of red tape increase

Small businesses are the most impacted by red tape, with 'micro firms' (those with fewer than 10 employees) carrying 69% of the burden, according to figures from the Institute of Chartered Accountants in England and Wales (ICAEW).

The findings also revealed that the cost of red tape has increased from £6bn to £7bn in the last year.

Eric Anstee, ICAEW chief executive, said, 'Government measures to improve access to finance, reduce skills shortages and improve the burden of red tape are falling short of their objectives'.

Meanwhile, the British Chambers of Commerce (BCC) is taking its latest red tape survey to the European Commission, in a bid to reduce the future impact on UK businesses.

Of the 1,200 businesses surveyed, 79% said that they would be forced to cut jobs as a result of the Temporary Workers Directive, while 81% said that their business would be faced with additional costs.

More than 50% also said that removing the UK's right to opt out of the Working Time Directive would damage their business.

David Frost, BCC director general, said, 'After years of being strangled by reams of EU regulation, bosses are desperate for a signal from the new Commission that they will put the interests of business at the heart of their agenda'.

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