Government fails to impress with red tape report
Almost 80% of West Country businesses believe the impact of red tape will increase over the next year, despite government promises to the contrary.
In a survey carried out by Old Mill accountants and financial advisers, 78% of businesses in the south-west expected the burden of red tape to increase, with 19% forecasting it to stay the same. “This is a real reflection of the growing impact red tape has on businesses, despite government assurances to reduce the regulatory burden,” says Corporate Partner Jolyon Stonehouse.
“Fewer than 4% of respondents to our survey expect a decrease in the red tape burden, notwithstanding government promises to cut the cost to businesses of dealing with Whitehall by 25% by 2010.”
Recent figures revealed that £56bn of new regulatory burdens have been imposed on business since 1998. But Business Secretary John Hutton claims the government is on target to deliver its 25% reduction by 2010, with the south-west reportedly enjoying a £77m saving in the first year of the initiative.
He says the government has taken a number of positive steps, including halving the number of health and safety forms businesses have to fill in, speeding up the approval of planning consents, and removing the requirement for companies to hold an AGM or hire a company secretary.
“Despite these improvements, south-west businesses are still feeling the pinch of red tape,” says Mr Stonehouse. “There is clearly a large divide between the government’s view of deregulation and that of the people on the ground. The government needs to do a lot more to convince the region’s businesses that it really is acting in their best interest.”
Ends.
Notes to editors
For more information contact
Alan Stone - Marketing Manager
Tel: 01749 335007
E-mail: alan.stone@oldmillgroup.co.uk
About Old Mill Accountants and Financial Advisers
Old Mill accountants and financial advisers employ 140 staff in three West Country offices. The rural services teams are headed by Partners Mike Butler (Yeovil) and Ian Sharpe (Shepton Mallet). Looking after nearly 1,000 farmers they are one of the leading specialist farm accountants, and are happy to help with any financial and tax-related enquiries from the media.