Break chains on small firms

Apr 29 2008 by jez Davison, Evening Gazette

SMALL firms on Teesside have condemned the regulatory climate as a drain on resources, as lobbyists gather in Europe.

The Institute of Chartered Accountants in England and Wales (ICAEW) is stepping up pressure on the Commission to reduce the paper burden on SMEs as part of its initiative to modernise European SME policy.

Tees firms say extra help is essential to enable them to survive.

The Federation of Small Businesses has simultaneously called on the UK Government to honour its promise to limit the commencement date for legislation to two key days in the year, rather than drip-feed small firms with bureaucracy.

George Lowes, chairman of Crystal Galleries in Middlesbrough, said the amount of paperwork required by the authorities put a huge strain on a small firm’s resources.

“It’s just forms for forms’ sake and I don’t see the necessity of it,” he said.

He wanted more help for small firms burdened by statutory sick pay laws, while Alex Adamson, contracts manager for Middlesbrough-based CT Contractors, said still more needed to be done about tardy payers.

He wanted payment terms stipulated by the supplier to have the force of law.

Derek Abram, owner of Stockton-based HR outsourcing firm DBA HR Solutions Ltd, said the Government could do more to alleviate staff costs for smaller businesses.

He said: “Relief on employers’ national insurance (NI) contributions would help smaller firms that perhaps do not realise the overall cost of employing someone in their early years.

“Smaller companies that may not be able to afford lawyers’ fees also need more Government help to understand employment law.”

In its response to an EC consultation on a Small Business Act for Europe, the ICAEW says a “one-size- fits-all” approach to business has created a disproportionate burden on SMEs.

It calls on the Commission to consider a more coherent exemptions policy - particularly for micro-businesses which are far more likely to face a struggle to cope with the cumulative impact of regulation.