The Institute of Chartered Accountants in England and Wales (ICAEW)’s 2007 Enterprise Survey Report estimates that new legislation carries a price tab of up to £10.2bn for UK businesses. The regulatory cost to micro businesses is highest in relation to turnover and their share of the cost of implementing new legislation is estimated to have increased to 76%.
Financial reporting and corporate governance are particular administrative burdens for the very big businesses, while overall, employment legislation and health and safety are seen to impose the greatest administrative burdens.
The survey, mostly of financial directors, confirms UK businesses are looking to expand and are aware of the opportunities in the global marketplace. However, they feel constrained, particularly by skills shortages, the regulatory burden and complicated tax regime and look to the government to foster an environment where businesses can flourish.
The survey shows a majority of 72% of respondent companies are engaged in international activities and respondents were increasingly confident about the impact of continuing globalisation on their business, 44% viewing it positively – up from 40% in 2006.
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