Leaders call to cut red tape
BUSINESS leaders are calling on the Government to cut red tape after it emerged new regulation had cost North East firms £1.7bn in the past 10 years.
The latest British Chambers of Commerce’s Burdens Barometer shows the cumulative cost to businesses in the region of new regulation since 1998 has risen to £1.7bn, up from £1.4bn last year.
Overall, the cost of regulation on businesses in the UK since 1998 has risen to £65.99bn, up from £55.66bn in 2007.
But the BCC said there are three regulations which actually produce an annual saving for business - including the Fire Regulatory Reform Order, but added these are “too few and far between”.
A spokesperson said: “Whilst this is a start, every year UK businesses are going to be hit with an additional £10.4bn cost of regulation unless action is taken.”
“The uncomfortable truth for Government is despite two Acts of Parliament designed to make this possible, the Regulatory Reform Act (2001) and the Legislative and Regulatory Reform Act (2006), the increase surges on.”
It has called on the Government to review a number of regulations, including The Data Protection Act which has so far cost business more than £7bn and the Flexible Working (Procedural Requirements) Regulations 2002 which have cost business £1,588bn since 2002.
North East Chamber of Commerce membership and policy director Andrew Sugden said: “We all recognise that there is a need for regulation on business. But this must be proportionate and avoid undermining success. It must also be delivered with high quality information and advice so the vast majority of businesses who want to do all they can to comply know exactly what is expected of them.”
Sally Low, director of policy at the British Chambers of Commerce, added: “The success of the Government’s drive for better regulation must be judged on the extent to which the UK’s regulatory burden has been reduced. On this basis the Government’s record does not stand up to scrutiny. Our Burdens Barometer figure now stands at almost £66bn compared to a figure of £10bn in 2001 when we first compiled it.”
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