red tape
on the issue of deregulation, but
the widespread culture change needed across Whitehall has yet to bear fruit. It cannot be denied that a number
of ambitious targets to improve the regulatory environment for small fi rms have been put into place, and we have welcomed these. The UK Government’s ‘Red Tape
Challenge’ – the project which aims to cut the stock of regulation – and the One-in One-out project – which seeks to reduce the fl ow of regulation – are particularly welcome, although we would like to see them go further. But businesses are still waiting for
the everyday regulatory burdens to decline and consistently tell us that the burden of inappropriate regulation seems only to increase. The problem is put into further
perspective by the fact that the UK still ranks 83 out of 142 countries for the compliance burden it places on business in the recent World Economic Forum’s Global Competiveness report – a concerning fi gure. The business community has had to
weather an extraordinary storm over the past few years and we regularly hear the Governments of Wales and Westminster stating that it is this sector that is likely to drive the UK out of the economic downturn. Given this rhetoric, it is something of
a paradox that the journey to growth for the small business community is consistently hampered by issues such as regulation. Our members in Wales consistently
cite regulation surrounding tax, health and safety, employment, waste
management and data protection as compliance areas they fi nd challenging. That’s without taking into account
the onerous red tape and bureaucracy they can encounter when trying to access public sector procurement opportunities or business support, grants and fi nance. We are further concerned about
changes which could add an even heavier load on employers over the coming years, such as automatic enrolment to pension schemes. Although we support the principle
of automatic enrolment, the resultant procedures for small businesses are far more onerous than ever envisaged. Forthcoming changes to extend the
right to request fl exible working to all employees, and potential changes to maternity and paternity laws are other key issues for us. Our members are concerned at the
length of time involved in responding to regulations, the need to keep up-to-date with new proposals and changes to existing regulation, interpreting which regulation applies to them and the completion of paperwork. It is often the cumulative burden of
regulation that is the problem. Small businesses want to be
compliant but the raft of regulation can stifl e their entrepreneurship. We often hear of employers being deterred from taking on staff by the prospect of burdensome regulation related to employment legislation. We believe inspectors need to view
themselves as supporters of better business and not simply enforcers who want to catch businesses out.
40 THEbusiness QUARTER
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