SMBs slam government plans to reduce red tape

Small business owners express sceptism over government plans in Forum of Private Business poll

Tightly wound tape: SMBs lack confidence that government plans to reduce red tape will work

The government’s ability to reduce the amount of red tape stifling small firms has been called into question by business owners.

In a recent Forum of Private Business (FPB) survey, just 28 per cent of the 51 small business owners questioned expressed confidence in the government’s ability to reduce the amount of legislation SMBs face.

Meanwhile, a further 40 per cent predict there will be no significant reduction in the number of rules and regulations SMBs must comply with during the coalition government’s reign.

A major reason, cited by 89 per cent of respondents, for this vote of no confidence was the lack of understanding among legislators about the pressure regulation puts on small firms.

Thomas Parry, research manager at the FPB, said the results of the survey were surprising, given how much support SMBs have shown for the Conservatives in the past.

“It would appear that many small firms feel as though we are now past the point of no return with legislation,” explained Parry.

“There is a sense that because there is so much of it and it is so deeply embedded in our legal framework, any attempts to tackle it are doomed to fail.”

The survey's findings follow the appointment of Lord Young as the government's enterprise adviser last week, who has been given the task of spearheading plans to help SMBs flourish in the post-recession era.