SME Business News

Small businesses have collectively saved almost £3 billion a year in a drive by the government to cut back on red tape.

The British government’s target is to cut administrative work for small businesses to 25% by May 2010 in an attempt to save at least £3.3 billion. In addition to this they have recently announced more plans to say up to £6.5 billion by 2015.

Despite this the Forum of Private Businesses (FPB) believes that more still needs to be done to “cut red tape.” The FPB’s policy representative, Matt Goodman, stated that small businesses still experience too much unnecessary paperwork and continued: “We would argue that more fundamental regulatory changes are needed which will create real savings for businesses, and that’s what we’re lobbying to achieve.”

In the Pre-Budget Report the Government announced that it has already identified potential savings of up to £1 billion towards the new target. In addition to this they have launched a “call for evidence” to enable businesses and interested parties to put forward suggestions of which regulatory activities place costs on the company that are disproportionate when compared to the benefits delivered to them.

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