The government must stop piling unnecessary rules and regulations on small businesses if the economy is to grow, says entrepreneur James Caan.

The government must stop piling unnecessary rules and regulations on small businesses if the economy is to grow, says entrepreneur James Caan.

‘It’s not the government’s role to create jobs, that’s the role of small business and entrepreneurs. Government needs to get out of the way and let us do what we do best,’ adds the former Dragons’ Den star.

Caan cites examples such as requiring a £35 poisons licence to sell toilet descaler or ant killer and requiring an alcohol licence to sell chocolate liqueurs but then prohibiting them next to lingerie.

Opening a new warehouse in Britain takes up to 18 months versus only four in Germany, he adds.

Caan, CEO of venture capital and investment firm Hamilton Bradshaw, says that prime minister David Cameron’s announced plans to “kill off the health and safety culture for good” by abolishing or consolidating up to half of existing regulations is “a good start”.

He supports the Federation of Small Businesses and the European Small Business Alliance’s recently tabled declaration in the European Parliament urging a halt to excessive rules and regulations affecting small firms.

He also notes a British Chambers of Commerce survey where 1,200 small and medium-sized businesses said they felt “choked” by government regulations.

Caan says, ‘Chancellor Osborne has declared that red tape reform has saved businesses £3.3 billion but think about that. That means those rules and regulations, prior to their repeal, were costing businesses £3.3 billion. I could put a lot of people to work with £3.3 billion.’

See also: Government aims to cut red tape