Bosses attack empty red tape pledge

By NATASHA MUKTARSINGH
Updated:

 

GORDON Brown's plans to take an axe to dozens of regulations imposed on companies is 'too little, too late', according to a survey of businesses.

Firms of all sizes say that the current wave of legislation is too complex and the Chancellor's announcement that a further 40 procedures are to be cut will make no difference.

A poll of more than 6,000 businesses by leading employment law firm Peninsula found that nearly three-quarters of firms do not comply fully with all regulations.

And 72% of companies admit that they regularly take shortcuts to avoid the red tape associated with managing their staffs.

More than half do not believe the Government is business-friendly and three-quarters feel that the concerns of employers are constantly ignored.

The Government is overwhelmingly blamed for the burden of red tape on businesses. In the survey, 94% said it was the fault of Whitehall.

Peter Done, managing director of Peninsula, said: 'Brown's announcement of reforms is too little, too late for businesses that are struggling to comply with an ever-increasing number of rules. If new legislation is to be brought in twice a year, as proposed by the Department of Trade and Industry, it is likely to be rushed through Parliament and not be considered properly. This will only add to the burdens on business.'

Garry Parker, head of policy at the Forum of Private Business, added: 'There is a Whitehall disease, which is shared by politicians, to increase the amount of legislation. None of them really know how to cut red tape.

'Until businesses can see a reduction in their hourly burden caused by legislation, none will believe that anything has been done to help.'

While many businesses acknowledge the need for regulations to protect staff, more than 80% think the Government should do more to reduce the raft of laws coming in from the Continent.

Done said: 'Our own calculations show that new legislation has cost employers £21 billion since the election of the Labour Government in 1997.'

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