Red tape costs SMEs £10.2 billion
Apr 17 2008
The amount of regulation faced by small and medium-sized enterprises (SMEs) is stifling business and should be reduced, according to the Institute of Chartered Accountants in England and Wales (ICAEW).
The ICAEW claims that the total cost to SMES of implementing new regulations is £10.2 billion each year in the UK alone. Red tape acts as a 'burden' on SMEs, which are subject to many of the same problem-creating rules as larger companies.
Head of medium sector issues at the ICAEW said the European Union especially needed a 'fresh approach' to SME issues, ideally one that is 'framed by a coherent set of principles'.
'The ten tenets of SME policy devised by the ICAEW ask for any future legislation to be based on evidence; focused on incomes; simply communicated and easily applicable,' he adds.